Hi,
When the fair value of an intercompany loan is different compared to the carrying amount, the difference is considered as a capital contribution if it's under common control. This applies when the parent wholly own the sub.
What happens if the there are a bunch of shareholders but none of them has control over sub ? or one or two of them ?
Thanks
Interest-free loans or loans at below-market interest rate
Re: Interest-free loans or loans at below-market interest rate
To be honest, the wording used in IFRS, is "Parent". I guess that a shareholder with 0.0001% of the shares is not a parent ?
So if it's not a parent, is not wholly owned is isn't it ?
So if it's not a parent, is not wholly owned is isn't it ?
Re: Interest-free loans or loans at below-market interest rate
Which IFRS paragraph are you referring to specifically in the context of this topic?
Re: Interest-free loans or loans at below-market interest rate
you are right Marek, the wording is shareholder not parent. So I guess any shareholder could be included in this category.
Thanks
Thanks
Re: Interest-free loans or loans at below-market interest rate
What if the loan is interest free and there's no maturity date per the agreement