Co A purchases a property. It then subsells to related (by common ownership & director) co B '99% of it's equitable interest in the property'.
'The consideration for the sub-sale B agreeing to grant a 0.25 percent RTI Linked unsecured Perpetual Annuity Bond with a nominal value of X'
Final wording on the legal agreement is 'It is hereby agreed that on completionof the purchase of the propert ... the property shall be held by A on trust as to 1% of the beneficial interest in the property for A and the remaining 99% on trust fo B absolutely'.
Mgmt accounts have the property on A's Balance Sheet (undepreciated). Property is used for A's trade, no rent it paid.
1. Should the property be wholly on A's Balance Sheet, with no entry in B's accounts?
2. A hasn't actually drawn on B's bond (rather a bank loan was taken out to fund the original purchase), presumably I don't need to reference it in anyone's accounts?