JAIIB | AFM | CASE STUDY ON HOLDING ORMS BASED METHOD

In the progressive field of banking, the Junior Associate of Indian Institute of Bankers (JAIIB) exam is a critical stepping stone for banking professionals in India. Among the essential topics in the JAIIB Accounting and Financial Management (AFM) module is the Holding ORMS-Based Method. Learning Sessions presents this article on the case study that delves into the practical application of the Holding ORMS-Based Method, exploring its importance, applications, and key principles.

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The Holding ORMS-Based Method is a technique often applied when a holding company combines financial results with its subsidiaries. Holding companies oversee the management and finances of one or more subsidiary companies, and effective consolidation methods are essential for providing a clear financial picture of these interlinked entities.

For the extensive preparation of candidates, get details through our YouTube videos for JAIIB AFM Module wise Syllabus with explanations and tips to help candidates in their preparation journey.

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In the context of the JAIIB AFM module, the Holding ORMS-Based Method is notably important due to its ability to:

1. Present a Unified Financial Picture: It provides an overarching view of the financial status of the entire corporate group, including parent and subsidiary entities.
2. Ensure Compliance: This method aligns with accounting standards, like the Indian Accounting Standard (Ind AS) and International Financial Reporting Standards (IFRS), which require consolidated statements for group companies.
3. Streamline Financial Management: By centralizing data, the holding company can oversee resource allocation, cost reduction, and profitability management across subsidiaries.

To sum up, in the JAIIB AFM module, the Holding ORMS-Based Method is a foundational concept that offers a structured approach to managing consolidated financials for holding and subsidiary companies. Its emphasis on inter-company eliminations, goodwill calculation, and minority interest adjustments makes it a critical skill for banking professionals handling complex organizational structures. By understanding these concepts, JAIIB aspirants not only enhance their expertise but also position themselves as valuable assets in the banking sector, capable of supporting the financial growth and compliance of complex corporate clients. Learning Sessions provides additional information about JAIIB AFM WORKING CAPITAL  by giving examples of real life scenarios.

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