Distinction between upstream and downstream transactions

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Reference no: EM13880067

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.

Reference no: EM13880067

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