Question

Under certain circumstances, profits made on transactions between members of a group need to be
eliminated from the consolidated financial statements under IFRS.
Which of the following statements about intra-group profits in consolidated financial statements
is/are correct?

i. The profit made by a parent on the sale of goods to a subsidiary is only realised when the
subsidiary sells the goods to a third party

ii. Eliminating intra-group unrealised profits never affects non-controlling interests

iii. The profit element of goods supplied by the parent to an associate and held in year-end
inventory must be eliminated in full.

A. (i) only
B. (i) and (ii)
C. (ii) and (iii)
D. (iii) only
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Answer 1

Answer:

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