consolidate a/c
meibaker
Registered Posts: 481 Dedicated contributor 🦉
balance sheet...........................A......................B
current assets
trade receiveable....................11,508...............5.154
receivable from B plc...............4,000...................0
current liabilities
trade payable.......................13,432.................1475
payable to A plc.....................0........................4,000
the thing i dont understand is i thought we need to deduct the inter-trading amount 4,000 in both trade receivable and payable, but the answers don't seem to bother, why??
thank you!
current assets
trade receiveable....................11,508...............5.154
receivable from B plc...............4,000...................0
current liabilities
trade payable.......................13,432.................1475
payable to A plc.....................0........................4,000
the thing i dont understand is i thought we need to deduct the inter-trading amount 4,000 in both trade receivable and payable, but the answers don't seem to bother, why??
thank you!
0
Comments
-
In the consolidated financial statements you would always eliminate (the effects of) intra-group trading - including receivables/payables balances at the end of the year. This is a specific requirement in IAS 27.
Is this the full Q you have posted?
Kind regards
Steve0 -
hi , this is the question from december 2007 past exam
additional question didn't even mention anything about inter trading...
very confusing......0
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