Loans to Parent Companies
Please comment on the requirement if any to disclose “loans to Parent” in the consolidated accounts of the parent. Particularly under IFRS 24.
Example: Subsidiary capital and surplus $10 million
Loan to Parent by Subsidiary $80 million (major asset of subsidiary and major liability of parent)
Loan at a rate of interest (market rate)
My clear understanding is that the asset and liability will be a wash on consolidation, but my question is: Should Parent disclose such a transaction in its consolidated financials notes as a related party transaction?