Intercompany Receivable/Payable

[S2023]

Hi,

Is the below treatment correct?

Subsidiary A (100% held by Parent B) has a receivable from Parent B but parent B has the same receivable from company X outside the group,
so in consolidated statements, Parent B consolidates and recognizes the receivable that subsidiary A is booking but does not account for a payable to sub A and receivable from company X. Ultimate position at the group level is correct but missing payable to sub A and receivable from company X entries as they net-off.

is this ok? Also what IFRS should I be referring to?

[Marek Muc]

I find this scenario unclear. What do you mean when you say that the same receivable is held by both the subsidiary and the parent?

[Leo]

I think that's a consolidation question not an IFRS one. Intercompany balances are eliminated, you'll only get the payable position towards the third party.

[S2023]

Same receivable is held by both as Parent B will reimburse subsidiary A for the receivable and in turn will get the amount recouped from Company X.
Full example below:
Subsidiary A has a receivable from Parent B of $100
Parent B payable to Subsidiary B of $100 AND Also a receivable from Company X of $100
Company X payable of $100 to Parent B
Subsidiary A is 100% held by Parent B and there accounts are consolidated.
Where can I find guidance to record this transaction correctly?

[JRSB]

I think you have, at group level there is just the group with a receivable from X

[S2023]

is there any guidance please?
I'm not sure if we can just say -
Subsidiary A has a receivable from of $100 which gets consolidated and not record the entries at Parent level?

[JRSB]

The guidance is IFRS 10, ie the principles of consolidated accounting.

[S2023]

thanks

[Marek Muc]

You may also want to check whether the parent should offset these items in its separate financial statements. - see https://ifrscommunity.com/knowledge-bas ... struments/