Loans to Parent
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?