My company, which is a parent company, gave a no interest loan to its subsidiary
So I discounted the loan at present value and recorded the deference as an investment in the subsidiary
The entry was :
DR : loans (at present value )
DR : investment ( the deference)
CR: cash
My auditor asked me to provide him with the exact paragraph in IFRS that proves my treatment is right
So can you provide me with the standard and the paragraph that proves my treatment right
So I discounted the loan at present value and recorded the deference as an investment in the subsidiary
The entry was :
DR : loans (at present value )
DR : investment ( the deference)
CR: cash
My auditor asked me to provide him with the exact paragraph in IFRS that proves my treatment is right
So can you provide me with the standard and the paragraph that proves my treatment right