Gains or losses on assets acquired in "deferred intercompany transactions" will not be partially recognized when the purchasing member of the group begins depreciating that asset.

Question

Quizplus · Accepted Answer

In consolidated financial statements, gains or losses on assets acquired in deferred intercompany transactions are not recognized immediately but are deferred and recognized gradually as the asset is depreciated or amortized by the purchasing member. This means that the gains or losses will indeed be partially recognized over time, corresponding to the depreciation or amortization of the asset.

Gains or Losses on Assets Acquired in "Deferred Intercompany Transactions