If parent give loan to subsidiary before acquisition, at the time of consolidation, what will be the accounting treatment in a group as a whole for the interest that is treated as finance cost and interest received in individual financial statement?
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Consolidation
6y ago#1Hi,
Once the acquisition has happened then the loan becomes intra-group so all amounts are eliminated on consolidation. So, the asset/liability in the CSFP and income/expense in the CSPL.
Thanks
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