Accounting of inter corp. loan below market rate in ind-as

Sandeep Garg (Consolidation and IndAS Application)   (1056 Points)

17 March 2016  

Hi,

Please let me know the likely treatment of Inter corporate loan given at below market rate with journal entries as per the below example - 

Holding co. H extends an interest free loan of INR 100 mn to Subsidiary B repayable after 5 years.

Thanks