MyVirtualCPA : Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
MyVirtualCPA : A loan receivable to a related party is still an asset
MyVirtualCPA : It is not equity
MyVirtualCPA : Is there anything else I can help you with today? If not please rate my response as "excellent' so that I may receive credit for assisting you today
Customer: Thanks, XXXXX XXXXX please mind to help me find a source information? Because I really need it as a reference, so I could convince the other party. I tried research but couldn't find one. However, I do think it is considered as asset instead of equity.
MyVirtualCPA : It's called a receivable ... receivables are always assets
Customer: No, there is an account called subscription receivable, that is considered in equity section...
MyVirtualCPA : This is not equity though
Customer: subscription receivable means stocks are issued exchange with cash, but the company not yet received cash yet..
MyVirtualCPA : That's different as it deals with stock
MyVirtualCPA : Loan receivables from related parties are assets - they have nothing to do with stocks or equity
Customer: Yes, agreed...but are there any source document that I could refer as well?
MyVirtualCPA : There's no source...it's common knowledge
Customer: I see, thanks!
MyVirtualCPA : You're welcome is there anything else I can assist you with today?
Customer: That's all my questions, thanks!
MyVirtualCPA : You're welcome