Consolidated statement of financial position

Which of the following statements apply when producing a consolidated statement of financial position?
(1) All intra-group balances should be eliminated.
(2) Intra-group profit in year-end inventory should be eliminated.
(3) Closing inventory held by subsidiaries needs to be included at fair value.
A (1) only
B (1), (2) and (3)
C (1) and (2) only
D (3) only

Hello tutor,

The answer is (C)

I have a question related to (2) Intra-group profit in year-end inventory should be eliminated. I thought that only intra-group profit which has not been realised is deducted from YE inventory, right? But here it said intra-group profit in YE inventory in general, which means the profit regardless realised or unrealised. Am I missing something here?

Thank you!