Question: Ding intra-group transactions is correct? Transactions that only create a balance between the parent and subsidiary need not be eliminated because there is no effect

Ding intra-group transactions is correct? 

Transactions that only create a balance between the parent and subsidiary need not be eliminated because there is no effect on group profit/loss. 

Only upstream transactions need to be eliminated.

Transactions that result in profits/losses being carried in assets of the parent or subsidiary need to be eliminated.

Intra-group transactions are eliminated since they are not recognized by the Australian Taxation Office.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The detailed answer for the above question is prov... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!