Have a client that is a wholly owned subsidiary that built up a significant creditor with its parent company. The creditor originated as a mixture of cash loans and trading account.
During the year we are preparing accounts for the debt was released in exchange for an additional share. The amount released was just over £2m and one share was issued with a nominal value of 10p.
My query is, should the excess over nominal amount be classified as Share Premium or Profit & Loss Reserves or indeed a mixture based on how much of the balance originated from cash loan / trading account.
I would welcome advice on this matter.
I work as Financial Consultant for my clients..Am direct mandate to an Active, Reliable and Capable provider of bank instruments,such as fresh cut BG, SBLC, MTN and LC which are specifically for lease/purchase, our Bank instruments can be engage in PPP Trading, Discounting, Signature Project(s) such as Aviation, Agriculture, Petroleum , Telecommunication, Construction of dams, Bridges, Real Estate and all kind of projects.
Right now we currently have options for lease/Collateral for Loan and we can deliver instruments strictly with our terms and procedure only. Best Regards
Martin SteffensEmail: marts.capitalfinance***Skype: marts.capitalfinance***