AASB 10 Consolidated Financial Statements prescribes that intragroup balances,transactions,income and expenses be eliminated in full on consolidation.This requirement is consistent with the parent entity concept of consolidation.

Question

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The requirement to eliminate intragroup balances and transactions is consistent with the entity concept, not the parent entity concept, as it treats the group as a single economic entity.

AASB 10 Consolidated Financial Statements Prescribes That Intragroup Balances,transactions,income and Expenses