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Consolidation

SMSalman mishra3y ago
What is the adjustment you have to do if ,for example parent also buys 8% loan note of sub, do we have to calculate interest and remove it or what ?
P2-D2P2-D2Tutor3y ago#1
Hi, Yes, as the purchase of the loan notes issued by the subsidiary is an intra-group balance then it would need to be eliminated on consolidation along with the associated interest. Thanks
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