04-21-2010, 06:44 PM
@ abuzar qasim qazi 99 entry..
well yar we are ultimately consolidating everything in holding company accounts. thus there are tywo ways to deal with unrealised profit on intra company transactions
1) we adjust/eliminate unrealised profit in subsidary company accounts.than consolidate its P/L in hoding company's P/L
2) or we can first combine subsidary company P/l prior to unrealised profit elimination with holding co P/l and than pass adjusting entry.
the ulimate objective is we reverse that profit which is still unrealised in other words whose profit revolves still within the group entities...
i wish the above discussion will be helpful
well yar we are ultimately consolidating everything in holding company accounts. thus there are tywo ways to deal with unrealised profit on intra company transactions
1) we adjust/eliminate unrealised profit in subsidary company accounts.than consolidate its P/L in hoding company's P/L
2) or we can first combine subsidary company P/l prior to unrealised profit elimination with holding co P/l and than pass adjusting entry.
the ulimate objective is we reverse that profit which is still unrealised in other words whose profit revolves still within the group entities...
i wish the above discussion will be helpful
