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Forensic Accounting

how would parent company account for the investment in the unsecured loan stocks and the warrants?


the subsidiary company issued the unsecured loan stock which comes with the warrants attached.Then the parent company acquired the unsecured loan stock together with the attached warrants.

asked Dec 30, 2016 in IFRS 10 - Consolidated Financial Statements by fazlinaosman Level 1 Member (1,200 points)

1 Answer

0 votes
As per IFRS 10,  Unsecured Stock loan of the subsidiary company would be recorded as debt after deducting inter company share in Stock loan.

In case of Inter-company unsecured stock loan balances, transactions between Group companies are eliminated.
answered Dec 31, 2016 by Shivangi Level 4 Member (7,570 points)



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