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INTRA_GROUP TIPS

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › INTRA_GROUP TIPS

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by fidget.
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  • May 4, 2013 at 1:46 am #124471
    valiaty
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    • Topics: 17
    • Replies: 40
    • ☆☆

    Any tips to understand the INTRA-group transactions?

    May 4, 2013 at 2:58 pm #124524
    fidget
    Member
    • Topics: 8
    • Replies: 207
    • ☆☆☆

    Intra group transactions are basically trading or borrowing/lending between companies within the same Group. When the Group has to prepare consolidated accounts at the end of the reporting period, the Group is seen as a single entity. This means that as a single entity, the Group cannot trade with itself or borrow/lend to itself, so all intercompany transactions need to be eliminated on consolidation so as to present financial statements as a single entity.

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