Where one group co owes money to another group co or one co holds loan stock of another co , the asset and liability balances will be eliminated on consolidation. As far as the group is concerned , they do not represent amounts due to or from third parties. Sir this answer is from bpp. I do not understand the last line ( they do not represent amounts due to or from third parties )
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Explain why intragroup transaction and balances eliminated on consolidation
10y ago#1If a subsidiary owes money to a parent, and therefore the parent is owed money by the subsidiary ...
... how is any third party involved?
It's purely an internal domestic arrangement
If your father owes money to your mother, how does that involve any stranger in the next village?
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