Which of the following items is an example of an intragroup service?
A) A subsidiary sells inventory to its parent entity.
B) An intragroup transfer of non-current assets results in an unrealised profit.
C) One entity in a group acquires a depreciable asset from another entity in the same group.
D) One entity in a group rents a building to another entity in the group.

Question

Quizplus · Accepted Answer

An intragroup service refers to a transaction between two entities within the same group where one entity provides a service to the other. The rental of a building from one entity to another entity within the group is an example of an intragroup service. The other options (A, B, and C) involve the buying or selling of assets between entities within the group, which is not considered an intragroup service.

Which of the Following Items Is an Example of an Intragroup