Intercompany transactions

Intercompany transactions

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Husband and wife 50% each shareholders own two businesses, not in a group. One Co loans money to the other, at the year end there is a balance of £100k, should there be a note to this effect as the balance is included in other loans-creditors? Should there be interest charged in one, recieved in the other? Many thanks
Pedro

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Euan's picture
By Euan MacLennan
12th Mar 2008 10:30

FRSSE
The two companies are under common control and are therefore related parties. Details of the relationship, transactions between them and balances outstanding at the year-end must be disclosed in the accounts of both companies under the FRSSE.

If interest were payable, it would be a transaction to be disclosed.

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