Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Where to post a transaction

A limited Company is investing in another limited Company by buying shares. in the Company buying the shares would the transaction be posted to Fixed Assets? In the company selling the shares, where would this be posted please?

Comments

  • Zoynal98Zoynal98 MAAT, AATQB Posts: 65
    edited May 2017
    In the Company buying the shares would the transaction be posted to Fixed Assets? Yes, that's correct. It would sit on the SOFP as an asset (It's an investment and you are expecting a return).

    In the company selling the shares, where would this be posted please? Can't really answer this question but I don't think there is (Someone might need to confirm) I think it depends on how much the Company that is buying the shares invests on the other company. >20% - Associate, 50% has control over the company therefore consolidated group statements will be required to be completed between the 2 companies.
Sign In or Register to comment.