Illustrative example of disclosure of financial or other support provided to a consolidated structured entity
During the reporting period the parent provided financial support in the form of assets with a fair value of £12,000,000 (20X2: £0) and a credit rating of ‘AAA’ to its subsidiary, SPE 2 Limited, in exchange for assets with an equivalent fair value. There was no contractual obligation to exchange these assets. The transaction was initiated because the assets held by SPE 2 Limited had a credit rating of less than ‘AA’ and a further ratings downgrade could potentially trigger calls on loan notes issued by SPE 2 Limited. The parent did not suffer a loss on the transaction.