Accounting Entry for Bank Guarantee invocation

Let me explain this with an example, 

Suppose if my holding company (ABC Ltd) given guarantee on my behalf to my banker (XYZ Bank) for a loan of Rs 10 cr and i failed to repay the loan amount, then the banker have invoked the bank guarantee. 

The accounting entry will be as follows:

Loan (XYZ Bank) a/c Dr     10cr

           To ABC Ltd a/c                 10cr

Initial recognition- at fair value only of the financial guarantee with premium or without premium

with premium

Bank a/c

To Financial guarantee contract liabilities a/c

without premium

SPLOCI-PL a/c

To Financial guarantee contract liabilities  a/c

Subsequent measurement:

First amortise the financial guarantee contract, usually using straight line method. For 1000 loan guarantee over five years = 200₹

By financial guarantee contract liabilities a/c 200₹

To Income from financial guarantee a/c 200₹

Then, measure the financial guarantee at higher of :

• The loss allowance determined as expected credit loss under IFRS 9 and 
• The amount initially recognized (fair value) less any cumulative amount of income/ amortization recognized in line with IFRS 15.

if you calculate your ECL as 300, then you keep measuring the financial guarantee at 800₹ (1000₹ Minus 200₹) on your balance sheet. But due to fair value changes if the ECL is 1100₹, then recognise the loss in SPLOCI- PL 300₹ (1100₹ Minus 800₹). If the subsidiary completely fails to pay the debt, Write off the carrying amount as a loss.(ecl-ca)

the above answer suggests that liability is credited towards holding compan

I found a default entry and an example here: hope it helps you for reporting in holding company

https://www.bdo.nz/en-nz/accounting-alert-november-2018/accounting-for-financial-guarantees-under-ifrs-9

Thanks for providing amazing link.

Wow! I cam bacj again with improved knowledge. Funancual guarantees are treated accordingly. How is a bank guarantee treated no one knows. But surely evsryone in IFRS knows financial guarantees andtreatment. I have to do frigging researxh on how collateral is treated in tje books. Ive read it a long ago. My coolness is im g8ving you the rught terms to google all the truth is naked there. I dont have remember every frigging topic besides being qualified. 

MBA is supposed to know waht a bank guarantee is and the scrap they dont anything at all!! Lol how will an mba aid a politician or lectrurers or a corpprate. CA doesnt kniw that REITS  AND MUTUAL FUNDS are  p instruments MBA lecturers are obese and tgey hiw to help the society. 

Capotalists are saying MBA is good bad and ugly etc. Whats their disinterest in education they have to pay kings ransome.