Intercompany loans template

A free Excel template for a loan between two companies in the same group that is interest-free or not at a market rate, either for a fixed term or repayable on demand.

What it does

• Measures the loan at fair value using the market rate for a comparable loan and calculates the day-one difference.

• Shows how the lender and the borrower each account for that difference – a capital contribution or a distribution, depending on who lends to whom.

• Builds the monthly amortised-cost schedule with imputed interest, and the year-end balances split between current and non-current for both companies.

• Prepares the journals for both the lender and the borrower, including the movement in the lender's loss allowance that you enter.

• Provides the related party disclosure figures with draft note wording.

What you get

• One Excel workbook (.xlsx) with an Instructions tab, the blank template and a completed worked example for a fictitious company.

• Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.

• Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.

Scope

For each company's own financial statements – everything is eliminated on consolidation. Expected credit losses are entered, not calculated. Tax, transfer pricing, foreign currency and later modifications or waivers are outside its scope.

Designed for small and medium-sized businesses reporting under IFRS Accounting Standards. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab.