Accounting Question - Stock between companies

[JohanMel]

Good day

I was wondering if someone has some advise for me on this.

We are a group of companies, one of our companies bough stock (trucks) in one company, but the stock should actually be in the other company. We need to transfer this stock between companies, how do we go about doing this without further financial and tax implications?

The obvious solution would be to sell the stock to the other company, but the company does not have enough funds to do this. The total amount of the stock is around R15 million.

if someone has some advise on this I will appreciate it.

Regards

 

[ArmatageShanks]

If company A has the truck's and sells it to company B company B doesn't have to pay immediately do they? also can't company A sell the trucks to company B for R1?

 

[rrh]

Best speak to your company's auditors

 

[WalkWithMe]

Good day

I was wondering if someone has some advise for me on this.

We are a group of companies, one of our companies bough stock (trucks) in one company, but the stock should actually be in the other company. We need to transfer this stock between companies, how do we go about doing this without further financial and tax implications?

The obvious solution would be to sell the stock to the other company, but the company does not have enough funds to do this. The total amount of the stock is around R15 million.

if someone has some advise on this I will appreciate it.

Regards

This is not a question of social media forum, you are over R5mil, you need to speak with your auditors.

 

[AchmatK]

Good day

I was wondering if someone has some advise for me on this.

We are a group of companies, one of our companies bough stock (trucks) in one company, but the stock should actually be in the other company. We need to transfer this stock between companies, how do we go about doing this without further financial and tax implications?

The obvious solution would be to sell the stock to the other company, but the company does not have enough funds to do this. The total amount of the stock is around R15 million.

if someone has some advise on this I will appreciate it.

Regards

Your CFO should be able to resolve this without tax implications for transactions between connected parties.

With stock of R15m, you should have a CFO with the proper qualifications to answer this.

Unless you are looking for help on your studies and this is a fictional scenario from your textbook.