Question
In: Accounting
n consolidation, intragroup entries are different from BCVR entries. Why is it necessary to make adjustments...
n consolidation, intragroup entries are different from BCVR entries. Why is it necessary to make adjustments for intragroup transactions?
Solutions
Expert Solution
Answer:-
Why is it necessary to make adjustments for intragroup transactions?
- The solidified monetary articulations are the announcements of the gathering, a monetary element comprising of the parent and its subsidiaries.
- The combined budgetary explanations at that point can just contain benefits, resources and liabilities that identify with gatherings outside to the group.
- Adjustments should then be made for intragroup exchanges as these are inner to the financial substance, and don't mirror the impacts of exchanges with outer parties.
- This is additionally steady with the element idea of combination, which characterizes the gathering as the net resources of the parent and the net resources of the auxiliary.
- Exchanges between these gatherings should then be balanced in full as the two gatherings are inside the monetary substance.
Note:-
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ekkarill92 answered 1 year agoRelated Solutions
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Why are tax effect entries sometimes necessary in making
consolidation worksheet adjustments? Explain this in detail for the
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On 30 June 2017, Apple Ltd sold a motor vehicle to Pear Ltd for
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During the consolidation process, it may be necessary to make which of the following adjustments to...
During the consolidation process, it may be necessary to make
which of the following adjustments to the individual
statements?
Select one:
a. pre-acquisition entries only.
b. business combination valuation entries and pre-acquisition
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question: Make the end-of-period adjustments entries  
question: Make the
end-of-period adjustments
entries
Trial balance for Tracy Underhill as
at 31 December 2017
Debit
Credit
£
_ .
£
Sales revenue
695,000
Inventory (as at 1 January 2017)
105,800
Purchases
625,200
Non-current assets at cost:
Equipment
100,000
Motor vehicle
80,000
Accumulated depreciation:
Equipment
10,000
Motor vehicle
10,000
Insurance
14,700
Rent
30,000
Heating and lighting
10,000
Salaries and wages
40,000
Motor expenses
15,300
Miscellaneous expenses
28,500
Receivables
110,000
Allowance for receivables
14,000
Payables
101,500
Cash...
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12
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