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Loan to directors

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Loan to directors

Viewing 2 posts - 1 through 2 (of 2 total)
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  • November 5, 2018 at 9:21 am #483872
    zkaay
    Participant
    • Topics: 212
    • Replies: 98
    • ☆☆☆

    Hi sir,

    1) Is it allowed to give loans to directors?

    2) if yes, how to treat them?

    Thanks

    November 5, 2018 at 7:55 pm #483932
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7217
    • ☆☆☆☆☆

    Hi,

    Yes it is allowed from an accounting perspective but there may be tax issues surrounding it. There is nor special accounting treatment other than it being a related party transaction and will therefore need to be disclosed.

    Thanks

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