Actg for additional capital contributions

USA Discussion in 'Technical Queries' started by Bluetap70, Nov 21, 2018.

  1. Bluetap70

    Bluetap70

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    Wondering if anyone can point me in the right direction...
    A parent company owns 100% stock in a sub. During the year, the parent contributed additional capital to the subsidiary to help fund operating activities at start-up. The additional capital was not considered a loan. I'm confused as to how the capital should be recorded since the parent already owns 100% interest.
    At first I thought it would be additional paid-in capital under equity but all the guidance I find references non-controlling interest. Should it just be recorded as an additional investment in the sub under assets?
    Reporting under US GAAP. Thanks!
     
    Bluetap70, Nov 21, 2018
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  2. Bluetap70

    bklynboy VIP Member

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    Its APIC - increase asset and offset to APIC
     
    bklynboy, Nov 22, 2018
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