INTRAGROUP INCOME ELIMINATION DURING PREPARATION OF CONSOLIDATED FINANCIAL REPORTING IN TRADE GROUPS
The article considers the problem of exclusion (elimination) of the results of intercompany transactions between members of the consolidated group, it explains the basic terminology of intercompany transactions with the financial reporting consolidation. The article disclosed the difference between realized and unrealized intragroup income, raised the problem of elimination of intragroup income in the consolidated financial statements of the group. The article considers accounting operations for the sale of goods by the parent company to subsidiary and their subsequent sale outside the group. It shows the example of adjustments, which are caring out to eliminate the effects of intragroup transactions in the event of a complete resale of goods outside the group, and its resale partial absence. In the example, it is considered the effect of intercompany transactions on the income and COGS of comprehensive income (financial results) and items of goods and retained income statement of financial position (balance sheet) of the consolidated group.