Letter of comfort and Parent company: Difference between pages

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imported>Doug Williamson
(ACT Website link added 1/10/13 & spelling correction in definition)
 
imported>Doug Williamson
(Add link.)
 
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A formal letter written to a lender, normally by a parent company, indicating a willingness by the parent to accept some responsibility to honour the borrowing obligations of, or to otherwise support, a subsidiary or associated company, but without necessarily constituting a legal obligation to do so.
A parent company (investing company) controls a subsidiary.




== ACT Website links ==
== See also ==
 
* [[Group]]
[http://www.treasurers.org/lettersofcomfort A Practical Guide to Letters of Comfort, 25 September 2013]
* [[Group accounts]]
 
* [[Letter of comfort]]
* [[Parent currency]]
* [[Simple investment accounting]]
* [[Sister company]]
* [[Subsidiary]]


== See also ==
[[Category:Accounting,_tax_and_regulation]]
* [[Letter of awareness]]
[[Category:The_business_context]]
* [[Parent company]]

Latest revision as of 21:47, 3 December 2022

A parent company (investing company) controls a subsidiary.


See also