An "hive-up" is an intragroup transfer of a company from a subsidiary to the parent company. This is the transfer of assets and the resumption of liabilities that constitute the divested transaction, not the transfer of the shares of the company. A hive in which assets are transferred to a company, possibly a shell, so that the shares of that company can then be sold. It may be more tax efficient for the end buyer to acquire the assets within a business structure rather than as a self-employed, but he or she does not want the bonds or the history of the original business. This content is not available for free. To access `Accounting for a hive up under FRS 102`, you must be one of the following: "The main feature of this agreement is that the seller gives no guarantees. The risk for acquired assets is fully assumed by the buyer. Hive essentially means "moving." An asset, or all activity can be "stung" to a currently existing or newly created group company, we call it "groupco." This agreement is written in plain English and is used for maximum flexibility and ease of use. The term "hive up" is often used to describe a kind of restructuring within a group of companies when net assets and activity carried out by a subsidiary are transferred to the parent company. As a general rule, we recommend that you obtain an independent valuer before making a decision on hive up, Hive out or Hive down in order to provide an assessment of the company facilities. A spin-off house in which assets are purchased by a parent company so that the subsidiary can be sold or liquidated separately.
This content is available to ACA students. If you want to start qualifying the ACA, there are several ways you can take after the end of the CVA, Topco could be dissolved or remain socially viable as a holding company. The parties may purchase the shares from the liquidator after evaluation by an independent party. Maybe Bottomco could find new ways to do that. Suppliers of these funds should consider accepting adequate guarantees and bank debts in oldco may be reduced to bottomco. That would apply, for example. B, to a transaction in which a group`s transactions and assets are transferred up, above or down (see point 6.6.2 below) or in which a partnership is converted to LLP or a limited partnership (see 6.6.3 below). In addition, a newly created company may acquire the shares of the trading company ("oldco"), which moves to a CVA, for a zero or low amount, since the equity of the existing Oldco company is often worthless.