Inter-company unrealized losses – to eliminate or not?

Hi, I’ve posted this under the respective video on group SPLOCI, but it seems it hasn’t been noticed.

In the video, Chris says that inter-company unrealized losses are not eliminated for consolidation purpose because of prudence. However, from the various sources that I found, both profits and losses have to be eliminated. In fact, I can’t see how prudence should get in the way of consolidation, because if the goods are remaining in the group, surely we need to adjust our financial statements as if the sale had never happened? If we retain the losses, then we’re not making a faithful representation because we’re being overly prudent.

Can anyone confirm about this? Thanks.