Related parties payables written off

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xkyriakou
Posts: 3
Joined: 02 Apr 2021, 10:29

Related parties payables written off

Post by xkyriakou »

A company has payable amount to a related party (both companies have the same shareholder) which was waived during the reporting period. Can this amount waived be posted directly to retained earnings or should be recognized in P&L ?
JRSB
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Posts: 629
Joined: 01 Mar 2020, 01:10
Location: UK

Re: Related parties payables written off

Post by JRSB »

what does the paperwork say.... if it was a contractual payable like any other, which was then released, that may be different to an intention to contribute capital. it can be important if the P&L credit would then be taxable...
Student of IFRS.
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