Page 9 - PowerPoint Presentation
P. 9
CONSOLIDATIONS AFTER THE DATE OF ACQUISITION
The elimination of common items
• According to IFRS 10.B86(c), profits and losses
resulting from intragroup transactions that are
recognised in assets, such as inventory and
property, plant and equipment, should be
eliminated in full.
• A tax adjustment must be made to allocate the tax
on the intragroup profit to the same accounting
period in which the unrealised profit will be
realised.
9
