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We converted a loan from Company A  to Company B to equity.  Company A now has 50% ownership in Company B as a result.  For Company A investment, we are reserving $155k asset for impairment of 50% at 12/31/2015.  I have recorded the impairment loss in Company A by Dr-Impairment Loss expense acct and Cr-Asset Acct, thereby reducing our investment in Company B.  What entry is made on Company B books to reflect value of investment acct in Company A to equal Equity acct in Company B?
in IAS 36 - Impairment of Assets by

1 Answer

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In the books of Co B the entry is to be passed is

Equity Capital A/c   Cr

Share Premium A/c Cr

Loan A/c                Dr
by Level 1 Member (1.8k points)
edited by