Page 10 - PowerPoint Presentation
P. 10
CONSOLIDATIONS AFTER THE DATE OF ACQUISITION
The Elimination Of Common Items
• Bank overdrafts and guarantees
• A bank overdraft of one entity in a group should
only be set off against the favourable bank balance
of another entity in the group if their bank accounts
are at the same bank, and
• the entity with the favourable bank balance
guarantees the bank overdraft of the other entity OR
• the bank itself sets off the two amounts in terms of
an agreement between the two entities and the
bank.
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