If a non- current asset is sold between two entities in a group:

Question

Quizplus · Accepted Answer

When a non-current asset is sold between two entities in a group, a consolidation adjustment is required to eliminate the effect of the intragroup transaction (choice A). Additionally, any gain or loss on sale must be eliminated from the consolidated accounts (choice B). Therefore, both choices A and B are correct. Choice C is not necessarily true as it depends on the selling price and carrying value of the asset.

If a Non- Current Asset Is Sold Between Two Entities