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HI
A PARENT HAD INVESTMENT INCOME OF $160000 SHOWN IN ITS INDIVIDUAL SP&L, WHEN CONSOLIDATED WITH SUBSIDIARY THE INVESTMENT INCOME IS EXCLUDED AND IT IS SAID THAT THE INVESTMENT INCOME IS FOR EXTERNAL USE ONLY SO IT IS NOT INCLUDED FOR THIS REASON.
MY QUESTION IS WHAT IF THE INVESTMENT INCOME IS FROM OUTSIDE THE GROUP EXAMPLE INVESTMENT INCOME FROM TRADED SHARES OR BONDS, DO WE STILL EXCLUDE SUCH INVESTMENT? ARE THERE SOME INVESTMENT INCOME WE CAN OR CANNOT INCLUDE IN C.S.P&L?
CLARIFY PLEASE THANKS CHRISSee Chapter 24 of the FR notes – all intra-group transactions are eliminated (100%) on consolidation (i.e. the income/expense cancel each other out).
It should be clear to you that if it’s not intra-group (i.e. external/with third parties) it’s not going to be affected by consolidation.
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