Discussions
Stay up-to-date with the latest news from NetSuite. You’ll be in the know about how to connect with peers and take your business to new heights at our virtual, in-person, on demand events, and much more.
Now is the time to ask your NetSuite-savvy friends and colleagues to join the NetSuite Support Community! Refer now! Click here to watch and learn more!
Offsetting and elimination methods for borrowing and lending in inter-subsidiary transactions
Offsetting and elimination methods for borrowing and lending in inter-subsidiary transactions
Please explain in detail the method of offsetting and eliminating borrowing and lending in inter-subsidiary transactions.
For example, if Company A makes a loan to Company B, a journal entry will be made for Company A as a loan and for Company B as a borrowing, respectively. These should be offset when preparing the consolidated financial statements because they are not liabilities or assets to external parties of the group as a whole.
How should the elimination journal entry be prepared to offset Company A's loans and Company B's borrowings when preparing the consolidated financial statements?
0