Intra-group transaction
An intra-group transaction occurs between entities within the same group. Consolidation eliminates relevant internal balances and transactions so the group is presented as a single economic entity. The group has no receivable or payable to itself, so both 300 balances are removed from the group statement.
Worked example
A parent owes its subsidiary 300 at year end; the reciprocal receivable and payable are eliminated on consolidation.
Common mistake
Eliminating external sales merely because one party is a group company.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | F2 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: intercompany transaction