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CONSOLIDATIONS AFTER THE DATE OF ACQUISITION

Property, Plant & Equipment (PPE)

• Unrealised profit included in depreciable property,

plant and equipment

• any unrealised profit made on the sale of PPE by one

entity in the group to another entity in the group, must

be eliminated.

• The buying entity will calculate depreciation on the cost

price of the asset (which includes unrealised profit). This

excess depreciation must be written back.

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