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Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Loan notes in group scenario
Hello,
This is my understanding of the loan notes in group accounts:
If it forms part of consideration that’s paid for acquisition:
Record loan note in liabilities (if not already recorded)
Deduct from investment (if recorded)
If it is given by subsidiary to parent on or post acquisition:
This is an inter company loan:
Deduct from Investment (if recorded)
Deduct from liabilities (if recorded)
How about a scenario where parent issues the loan note in post acquisition period ie. it doesn’t form a part of cost of acquisition.
Do we still deduct it from investment and record in liabilities?
Please also confirm if my understanding about loan note is correct.