Unrealised gains on the intragroup sale of depreciable assets are realised via depreciation charges over the remaining useful life of the asset.

Question

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Unrealised gains on intragroup sales of depreciable assets are not recognised in the financial statements. Instead, they are realised over the remaining useful life of the asset through depreciation charges. This ensures that the asset is ultimately depreciated to its original cost.

Unrealised Gains on the Intragroup Sale of Depreciable Assets Are