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Forensic Accounting

What happens to the portion recorded in equity? The discounted portion.


When the loan was given, the discounted portion was adjusted in equity of the borrower. How do you take out the equity portion when the loan is repaid earlier?

What will the accounting entries be. Thus, a difference would result between the nominal and present value of the loan that shall be accounted for in accordance with IFRS 10, Consolidated Financial Statements (previously, IAS 27 Consolidated and Separate Financial Statements). This Standard regard such difference as an additional investment by the parent in its subsidiary (in the parent's separate financial statements) while the subsidiary shall treat the difference as a reserve in equity.

related to an answer for: Inter company loans with no interest
asked Apr 10 in IFRS 9 - Financial Instruments by anonymous

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