I would like to know how a company would record shares in its books if
these were received as a gift.
Shares held by Mr. Brown in Company A were transferred to Company B as
a gift. How would these shares be recorded in the books of Company B
under IFRS? Please refer me to the applicable IFRS
I look forward to your response
TraciaOne would need to refer to the terms and conditions of the transfer of
the gift for the more detailed aspects of recording the transaction.However, assuming that it is a vanilla transaction, these shares would
need to recorded at fair value and classified in accordance with IAS
39 and thereafter subject to the provisions of that standard.The corresponding entry on the credit side would depend upon the
nature of the gift but once again assuming it is a simple gift, the
corresponding fair value side will be recorded as income. IAS 18 would
be the standard for guidance.You would also need to consider income tax and deferred tax
implications as per IAS 12 and the local tax laws.Hope that helps.