Page 351 - F1 Integrated Workbook STUDENT 2018
P. 351
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
2.4 Intra-group sales
Intra-group sales between parent and subsidiary must be eliminated.
This is just a movement between group members and only income from
outside of the group should be included. This will result in a reduction to
revenue and cost of sales.
2.5 Investment income
Investment income (dividends received) between parent and subsidiary
must be eliminated. This is just a movement between group members
and only income from outside of the group should be recognised in the
group accounts.
2.6 Interest
Interest paid between parent and subsidiary must be eliminated. This
will result in a reduction of both interest payable and interest receivable
on the CSP&L, only interest from outside of the group should be
included.
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