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Intercompany

Hello Robert,

having recently moved from sole proprietary company to holding with two subsidiaries structure, (the subs are owned by parent for 100%)
I'm improving and expending the COA in my (simple) accounting software

is it correct that in:

IFRS
holding (parent) income side:
Services Revenue 7.3.1.1.3
subsidiary expense side:
Management Fees 7.3.2.1.2.3.1

GAAP
holding (parent) income side:
Services Revenue 9.5.1.1.3
subsidiary expense side:
Management Fees 9.5.2.1.2.3.1

is ment to be used for intercompany management fees?

--
and
IFRS
holding (parent) income side:
Royalties Revenue 7.3.1.1.4.3
subsidiary expense side:
Royalties Expense 7.3.2.1.2.4.2

GAAP
holding (parent) income side:
Royalties Revenue 9.5.1.1.4.3
subsidiary expense side:
Royalties Expense 9.5.2.1.2.4.2

is ment to be used for intercompany royalties, like ip licenses

in situations where the subsidiaries pay management and royalties (license) fees tot the parent

then for intercompany leasing fixed assets from parent to sub:
IFRS:
holding (parent) income side:
Rent Revenue 7.3.1.1.4.4
subsidiary expense side:
Rent Expense 7.3.2.1.2.4.3

is ment for intercompany operating lease?

Thank you in advance,
also for the website, its a great help.
also https://www.ifrs-gaap.com/leasing was very helpful

Have a good week

Regards Alexander

Hello Alexander,

I.m glad it was helpful. Yes, those accounts would line up. The IFRS rent would also line up with the US GAAP  9.5.1.1.4.4 and 9.5.2.1.2.4.3.

Just be careful with leases. IFRS does not recognize operating leases for lessees.

You too

Robert


 

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