Subsidiary grant to parent

How do you record a grant by a subsidiary to the parent in the books of both companies

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Hi
Just wondering how I would record a grant made by a subsidiary  in the books of the parent Co? Would this be classified as an inter-co transaction and if so what entries do I put through?

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paddle steamer
By DJKL
09th Jan 2023 09:44

Is it really a grant?

If it is then Sub:

Dr Grants paid ( maybe the payer has distinct funds/accounts/processes for grants it routinely pays that modify this , that is if it routinely pays grants)
Cr Bank

Parent:

Dr Bank
Cr Grants received (what form/period covered by the "grant" may change accounting approach/recognition etc re this)

What sorts of beasties are these, charitable companies or something different?

Thanks (1)
John Toon
By John Toon
09th Jan 2023 15:48

Need a lot more info to answer this properly as the idea of two related companies paying and being in receipt of grants is extremely unusual unless they are charitable.

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Replying to johnt27:
avatar
By Hugo Fair
09th Jan 2023 16:36

Wikipedia:
Founders Pledge is a London-based charitable initiative, where entrepreneurs make a commitment to donate a portion of their personal proceeds to charity when they sell their business. Inspired by effective altruism, the mission of Founders Pledge is to "empower entrepreneurs to do immense good".

Lots of other entries via the usual digital networking channels - but not a lot of detail (that I can find) regarding the operation / its status / its finances / etc.

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