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Hi All, we've seen many questions on these forums relating to intra-group transactions not carried out at fair value or even without any consideration. I've summarised my suggested approach to these transactions:

https://ifrscommunity.com/knowledge-bas ... tatements/

Very good article ! Thanks

Good article, Marek.

Perhaps as a suggestion on the financial guarantee part, you could add that the parent could also choose to take the debit straight to P&L instead of increasing the investment.I believe there is an accounting policy choice here too.

Cheers

Thanks DJP, that's a good point, I will add it.

It’s worth noting that such a guarantee should be eliminated from consolidated financial statements if the underlying borrowing is already shown in the consolidated statement of financial position.

out of interest, why do you say 'if' here, if the parent has issue a guarantee then presumably it's debt to an external party? Or maybe 'since' is better. Actually, it's feasible that a parent could guarantee a loan between one subsidiary and another, so it's ok...

I was thinking about guarantees relating to undrawn facilities, but now I'm wondering if these should be eliminated anyway...