01-18-2006, 08:51 AM
Hi there,
I've a problem.
Under GAAP, intercompany company loans were treated as intercompany creditors in the balance sheet.
However under IFRS, intercompany loans are deemed to be Long term loans and borrowings.
The intercompany funds are loaned to finance the purchase of an asset.
So under IFRS, we reclassify those loans from long term loans and borrowings in to property plant and equipment
(credit Long term loans, debit property plant and equipment).
My question concerns how to journal the transfer from intercompany into long term loans and borrowings.
If anyone has had this problem, all advise would be gratefully received.
I've a problem.
Under GAAP, intercompany company loans were treated as intercompany creditors in the balance sheet.
However under IFRS, intercompany loans are deemed to be Long term loans and borrowings.
The intercompany funds are loaned to finance the purchase of an asset.
So under IFRS, we reclassify those loans from long term loans and borrowings in to property plant and equipment
(credit Long term loans, debit property plant and equipment).
My question concerns how to journal the transfer from intercompany into long term loans and borrowings.
If anyone has had this problem, all advise would be gratefully received.
