Make adjustments for intragroup transactions

Reference no: EM132893686

Chapter - Consolidation: intragroup transactions

1. Why is it necessary to make adjustments for intragroup transactions?

2. Why is it important to identify intragroup transactions as current or previous period transactions?

3. What are the key questions to consider when preparing consolidation worksheet adjustments for intragroup transactions?

4. What is meant by ‘realisation of intragroup profits or losses'?

5. With regards to intragroup transfers of inventories, are adjustments for current period transfers different from adjustments for such transfers happening in a previous period? Explain.

6. When are profits realised on transfers of depreciable assets within the group?

7. Are tax effect-entries required when adjusting for intragroup services or intragroup bor- rowings? Explain.

8. Are adjustments for post-acquisition intragroup dividends different from those for pre-ac- quisition intragroup dividends? Explain.

Reference no: EM132893686

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