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10.9 Receivables from shareholders
Publication date: 14 Oct 2019
us IFRS & US GAAP guide
Receivables from shareholders are generally required to be presented as contra-equity under US GAAP, whereas under IFRS they might qualify for presentation as an asset.
US GAAP | IFRS |
Public companies are required to record notes or other receivables from a parent or another affiliate as contra-equity. For private companies, there is no authoritative guidance that deals directly with advances to and receivables from shareholders. Generally, advances to or receivables from shareholders should be recognized as a reduction of equity. However, there may be some circumstances in which it is acceptable to classify the advance or receivable as an asset. | A company should recognize a receivable from a shareholder if it has a contractual right to receive cash or another financial asset. |
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