Adjustments for current period inventory transfers during intragroup consolidations do not affect current period profit accounts such as sales and cost of sales.

Question

Quizplus · Accepted Answer

Adjustments for current period inventory transfers during intragroup consolidations do affect current period profit accounts such as sales and cost of sales because they eliminate profits or losses arising from transactions within the group to present a true picture of the financial performance of the consolidated entity.

Adjustments for Current Period Inventory Transfers During Intragroup Consolidations Do