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CONSOLIDATIONS AFTER THE DATE OF ACQUISITION
Inventories
Unrealised profit in closing inventory
• One of the most common forms of intragroup
transactions is the sale (usually at a profit) of
inventories by one entity to another in the same
group.
• Where part of such inventories is still held by the
purchasing entity at the end of the reporting
period, the following applies:
• The total profit or loss arising from transactions within
the group, to the extent that such profit or loss is not
realised, is excluded in the determination of the total
group profit (or loss) or of the interest of the parent in
the profit (or loss) of any subsidiary.
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