Definition for : Dilution loss

Where a Parent company does not subscribe, either at all or only partially, to a Capital increase by one of its subsidiaries that takes place below the Subsidiary's Book value, the Parent company records a dilution loss. It is a non-cash expense.

(See Chapter 7 How to cope with the most complex points in financial accounts of the Vernimmen)

To know more about it, look at what we have already written on this subject