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Thanks for the explanation! If I am understanding the ask, in terms of legal structure this was done through shares/equity (issue of new shares at tradeco level) So, there is a 3 tier structure: Topco (1st) holds 100%equity shares in Holdco (2nd); and Holdco owns 100% shares in Tradeco (3rd) Tradeco...

Hi Marek, Thanks for getting back. This is very well appreciated. In this case, the underlying reason for this cash transfer was to constitute the share capital of the tradeco. Eventually to be used for tradeco's operations. For now the only transaction booked was Tradeco: Dr: Cash Cr: Share Capital...

Hi all I would like some guidance on the journal entries to pass for the below transactions. Details are as follows: Topco owns 100% of Holdco which in turn owns 100% of Tradeco. Consolidation is done at Topco level. Topco directly contributed (in cash) €100,000 to Tradeco. This €100,000 was capitil...

Confirmed, that they will become one legal entity

Many thanks for your reply. So in this case the share capital of the Italian parent would remain EUR 20,000 on the face of the balance sheet. What would be the journal entry of the €10,000 which was previosly the share capital of the german entity (now the branch of the parent)? How is the €10,000 r...

Hi everyone, I would like to ask a question with respect to branches and branch accounting By way of an example: Company A - is the parent company in Italy . Another German entity is going to be merged with the Italian parent company. The german entity will be a branch of the Italian entity. The Ita...

Much appreciated Marek for your comprehensive replies!

Thanks a lot

Thanks for your reply Marek! this is truly appreciated. Just to confirm my understanding is correct so if I can add on to this example. The entry to pass when the return of capital occurs would be: DR Bank EUR 50,000 CR Investment in Bond A EUR 50,000 Being original return of capital after 2 years I...

Thanks a lot both, I am in line with your understanding ! This is truly appreciated

Dear all, I am writing to ask whether someone could provide some insight with a question I have on Fund Investment from an IFRS stand-point. For ease of reference below a simplified example: An investment company reporting under IFRS which keeps its investments at FVTPL (therefore all fair value and...

Thanks for your kind reply and help JRSB, much appreciated !

Wishing you a good day

Dear all, I am writing to ask whether someone could assist me with a question I have on Fixed Income Investment from an IFRS stand-point and general accounting principles. For ease of reference below a simplified example: An investment company reporting under IFRS which keeps its investments at FVTP...