Page 321 - F3 -FA Integrated Workbook STUDENT 2018-19

Consolidated financial statements I

3.6 Other adjustments – intra-group balances

Intra-group balances must be eliminated in full. They could be either:

 current accounts (receivables/payables) or

 intra-group loans from parent to subsidiary.

 When cross-casting the assets and liabilities line-by-line, subtract any intra-
group balances between the parent and subsidiary as noted above

Example 2 which follows will be to demonstrate the application of the adjustments
required for fair value adjustments, the provision for unrealised profits and intra-group
balances.

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