AASB 10 Consolidated Financial Statements, requires that the effect of intragroup transactions be:
A) eliminated in full on consolidation.
B) adjusted for in full in the books of both the parent and subsidiary.
C) eliminated on consolidation to the extent of the parent's interest in the subsidiary.
D) adjusted for in the books of the parent and subsidiary to the extent of the parent's interest in the subsidiary.

Question

Quizplus · Accepted Answer

AASB 10 requires that the effects of intragroup transactions be eliminated in full on consolidation to prevent double counting and to ensure that the consolidated financial statements present the financial position and results of the group as a single economic entity.

AASB 10 Consolidated Financial Statements, Requires That the Effect of Intragroup