I have a client, a UK limited private company (ABC Ltd), which has 4 individual shareholders. ABC Ltd has no assets other than a 20% investment in a foreign private company (XYZ Ltd). This has been shown as 'Investment in XYZ Ltd' on the Balance Sheet.
The shareholders of ABC Ltd wish to exchange / demerge the 'Investment in XYZ Ltd' from ABC Ltd to the 4 individual shareholders. Understand will need to Cr - Investment in XYZ Ltd but not sure where the debit entry goes? Will it Dr - Loss of Investment through the P&L?
Also, I presume this will not attract any taxation implications within the company, ABC Ltd?