Hi,

Can any one explain to me what maybe the consequences for not eliminating the sale of non current assets in intragroup transactions within the same group?

I have tried to look for this information, but cannot seem to find it.

Can anyone explain or give me links were the information is available?

Help would be greatly appreciated.

You've posted this same thing like three times, which just gets confusing. You won't get an answer any more quickly that way. The difficulty is that this is actually a more advanced topic.

Not eliminating the sale of non-current assets in intragroup transactions would overstate the consolidated net income (loss) of the group if the sale resulted to the recognition of a gain (loss) by the selling entity. Hence, consolidated retained earnings and stockholders equity will also be overstated (understated).
Total consolidated assets of the group will also be overstated (understated) by the recognized gain (loss).


~liza
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