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Chapter 17

Intra-group trading

3.1 Removal of intra-group balances

Loans/ Receivables/ Cash/goods

investment payables in transit

Intra-group balances PURP
must be removed adjustments

Inventory Non-
current
assets

3.2 Trading balances

 Remove both the asset and liability

 Where asset and liability are not equal, adjust for cash and/or goods in transit
before removing the balanced asset and liability

A goods in transit adjustment will require a subsequent PURP
adjustment (see below).

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