Morning,
What is the accounting difference between these concepts?
1. Writing off a inter-company loan
2. Impairing a inter-company loan
3. Derecognition of loan balance?
When are you allowed to use which?
Morning,
What is the accounting difference between these concepts?
1. Writing off a inter-company loan
2. Impairing a inter-company loan
3. Derecognition of loan balance?
When are you allowed to use which?
Hi Krimpie
IAS 36 concerns impairment of assets and attempts to state them at their net recoverable amount.
Writing off an inter-company loan is when it is clear that it is non-recoverable, like a bad debt.
IAS 39 concerns derecognition and is somewhat complicated. Best you work through this document.
Dave A (24-Apr-14)
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