Because all intercompany transactions are eliminated in consolidation, the use of improper or unfair transfer prices has no consequences for consolidated reporting purposes.

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Quizplus · Accepted Answer

While it's true that intercompany transactions are eliminated in consolidation, improper or unfair transfer prices can still have consequences for consolidated reporting, such as distorting performance measures of individual units, affecting tax liabilities, and misleading stakeholders about the economic reality of the entity's operations.

Because All Intercompany Transactions Are Eliminated in Consolidation, the Use