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CONSOLIDATIONS AFTER THE DATE OF ACQUISITION
The Elimination Of Common Items
• According to IFRS 10.B86(c), profits and losses
resulting from intragroup transactions that are
recognised in assets, such as inventory and
property, plant and equipment, should be
eliminated in full.
• A tax adjustment must be made to allocate the tax
on the intragroup profit to the same accounting
period in which the unrealised profit will be
realised.
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