In the transferring of assets such as property, plant, and equipment within a group there is no need to eliminate profit in an asset such as land because land is a non-depreciable asset.

Question

Quizplus · Accepted Answer

Even though land is a non-depreciable asset, any profit resulting from transactions within a group must be eliminated to avoid overstating the asset's value and the group's profit, ensuring the consolidated financial statements reflect the economic reality of the group as a single entity.

In the Transferring of Assets Such as Property, Plant, and Equipment