Page 20 - Finac2 Test 1 Slides - 3. Intra-Group Transactions

CONSOLIDATIONS AFTER THE DATE OF ACQUISITION

Example - non-depreciable PPE

• The journal entry above is passed every year until the asset

is sold to a third party outside the group. The unrealised
profit of a non-depreciable asset only realises when the

asset is sold to a third party outside the group.

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