You are CFO of a large company that has a few subsidiaries. A new board member is unfamiliar with consolidation procedures particularly with respect to the elimination of intercompany inventory transactions. Provide a summary of your talking points with the board member that addresses the elimination entries that are necessary as well as the distinction between upstream and downstream transactions.

Answer rating: 100% (QA)

Parent and Subsidiary transactions should are viewed as internal transactions of a single economic a... View the full answer