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Intra Group Trading

AAbror10y ago
Hi. Mr John.... In consolidated statements, the profit figure for non-controlling interest doesn't match to the real figure in case of intra trading.. The real figure is the money which actually belong to subsidiary shareholders... Even though parent company buys goods from S company and hasn't sold outside yet, non controlling shareholders can get the money which they earn by selling to parent company , I mean these shareholders don't care whether it's sold to parent company or not... So that's why the figures don't match in consolidated statements....I am sorry if I can't explain what I want so say. Thank you.
John MoffatJohn MoffatTutor10y ago#1
You are correct in that the figures don't match. But that is not a problem - there is no such thing as the consolidated company, the statements are simply reflecting the 'true' situation when one company controls another, but have no force in law.
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