This Is a Loan Between a Parent and Its Subsidiary

question 71

Multiple Choice

This is a loan between a parent and its subsidiary channeled through a financial intermediary,usually a large international bank.

• A)International loan
• B)Fronting loan
• C)Transfer loan
• D)Unbundling loan

---

Definitions:

Advantages

The beneficial factors or positive attributes that contribute to the success or competitiveness of something.

Accounting Standards Board

An organization responsible for establishing and improving financial accounting and reporting standards to ensure clarity, consistency, and comparability of financial statements.

International Accounting Standards Board

An independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs).

IFRS

International Financial Reporting Standards are a set of accounting rules and standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.