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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › "Flattering"
Hello Sir, for June 2013 Q1
“It may be that Paradigm has deliberately ‘flattered’ Strata’s financial
statements specifically in order to obtain a high sale price”
How the Parent Co able to flattering the Subsidiary financial statement in order to look “good” performance? Can you give some example of this just for illustration?
Thank you.
Hi,
The main way is through intra-group trading at prices above market value.
Thanks
