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How to book funding Reserve capital?

LTD company wants to sent money to Polish company to fund their Reserve Capital

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My client has LTD company, which is shareholder in another company, that is based in Poland.

In accordance with Shareholders Resolution of Polish company, my client wishes to contribute to the Reserve Capital of Polish company. According to the tax advisor this is optimal transaction. I am wondering, as accountant of the LTD company, how to proper book such a operation. Could you help me with this? 

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By paul.benny
21st May 2021 13:00

It sounds like an investment in a subsidiary. What's the % shareholding that UkCo has in PolishCo?

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By MarkPo
25th May 2021 08:35

Best of my knowledge, UKCo is the only shareholder of PolishCo, so it has 100% shares.

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By paul.benny
25th May 2021 09:46

Sounds very much like an equity investment.

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