Where to post a transaction

holiday
holiday Registered Posts: 3
in General accounting discussion
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?

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  • Zoynal98
    Zoynal98 Registered 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.

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