أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
There are two transactions,
1- between bank and company A (taking loan from bank). Any interest expense in relation to this loan would be recorded in the books of company A only.
2- between compamy A and company B (providing funds to subsidiary). This provision may take any form as agreed between company A and company B. However, if this is in the form of an interest bearing loan to subsidiary company B, the subsidiary company B would pay interest on this subsequent loan to company A and record interest expense in its own books. (company A would record reciepts as interest income in its books. Net interest expense OR interest income for company A would be the difference between these two items)
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