Page 7 - Finac2 Test 1 Slides - 3. Intra-Group Transactions
P. 7
CONSOLIDATIONS AFTER THE DATE OF ACQUISITION
The elimination of common items
• The tax adjustment is done by
• crediting the income tax expense (decreasing the
expense) in the profit or loss section of the consolidated
statements of comprehensive income, and
• debiting the deferred tax account in the statement of
financial position (tax is prepaid, thus a debtor is
created).
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