Hi Mike, how do we treat the interst on loan note given by parent co. to an associate co. in CSof FP and S of P& L. thanks in advance
Ask the Tutor ACCA FR
interest on loan note from parent co.
10y ago#1I don't remember ever coming across this but, off the top of my head, I don't believe that we'd do anything!
The associate, although we do have significant influence, is a separate entity not under our control. As such, it has made up it's own mind to borrow money and we have been happy to lend it
I can't see any reason to cancel our "Loan interest received" against the associate's "Finance charges" expense
OK?
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