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consolidation process only?

Thanks a lot bro.

However, I am now confused due to your last sentence:

"as far as inter company balance concerns, these adjustments are only for consolidation process"

Does this mean that NCI & CTA entries are not posted in gl but only in excel reports for consolidation


You meant the intercompany eliminations are just in excel financials and journal entries are not posted?

Shouldn't the intercompany elimination entries be posted in elimination company (maybe one company created in books just for the intercompany eliminations) so that once the consolidated tb is run from the system, it will not show the intercompany balances?

related to an answer for: Actual journal entries?
asked Mar 6, 2017 in General IFRS Discussion by Pratik

1 Answer

0 votes
You are confused..

Let me explain again..the effects of each and every transactions between inter company must be eliminated at the time of consolidation process,which is an adjustment process only for preparation of account, untill and unless the effects has been realized i.e a subsidiary sell inventory to parent company and only those amount of profit would be added in retained earning which have been earned by parent company by selling such inventory..any amount of inventory  which is remain as stock in accounts of parent company would be shown net off percentage of profit charged by subsidiary at time of sales..in Consolidated profit and loss account, inter company sales and purchase shall be eliminated by whole actual amount..

if both parent and subsidiary enter into transactions with outsider, then the normal procedures of consolidation shall apply
answered Mar 6, 2017 by umarhussainia Level 5 Member (11,320 points)
Journal entries