free interest loan from the Parent
free interest loan from the Parent
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
Re: free interest loan from the Parent
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
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
Re: free interest loan from the Parent
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
2. yes, this approach can be used for associates as well