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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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