Accounting entry for contribution made to company limited by guarantee - IFRS standard

[Mark_C]

Dear all,

For a holding company injects fund into a subsidiary which is limited by guarantee, what are the accounting entries for this transaction for the holding and subsidiary?

For the holding:
Dr Expense
Cr Cash

For the subsidiary:
Dr Cash
Cr Captial contribution (report under Equity)

Please advise and should be grateful if you could reference to the IFRS standard too.

Thanks.

Mark

 

[kirby]

You need to buy - and read - a good Intermediate Accounting Book, which will cover this. The Parent Debit entry is made to Investment in Sub, which is an Asset account. Then the Parent's Investment in Sub acct and the Subsidiary's Capital Contribution account will be eliminated when you do the consolidation.