free interest loan from the Parent

All topics related to IFRS Standards.
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omarhorry
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Joined: 06 Jun 2021, 14:00

free interest loan from the Parent

Post by omarhorry »

the parent issue a resolution to transfer the due from the subsidiaries to a free interest loan, without mentioning the due date. how is the accounitng treatment
AntonMilo
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Joined: 14 Jun 2021, 16:23

Re: free interest loan from the Parent

Post by AntonMilo »

Hi Admin. thank you for sharing the article regarding this one. It really helps. I have just two questions, One is for the difference between cash received and fair value of the loan recognised as an additional contribution of equity by Parent, will it still remain as additional cost of investment in Parents books even after the loan has been all settled by subsidiary?

Second is , will the treatment be the same if the loan was given to an associate instead of subsidiary?

thanks in advance for your help
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Marek Muc
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Re: free interest loan from the Parent

Post by Marek Muc »

1. yes, it will remain as part of the cost even after it's repaid
2. yes, this approach can be used for associates as well
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