Transactions between entities that form an economic group should be eliminated in proportion to the level of control between the parent entity and the subsidiary entity.

Question

Quizplus · Accepted Answer

Transactions between entities within the same economic group should be fully eliminated in the consolidation process, not just in proportion to the level of control, to avoid double counting and to present the economic group's financial position and results accurately.

Transactions Between Entities That Form an Economic Group Should Be