Gain on the sale of land between affiliates should not appear in the consolidated income statement.

Question

Quizplus · Accepted Answer

When there is a sale of land between affiliates, it results in a gain or loss on the transaction. However, this gain or loss should be eliminated in the consolidation process because the land is still within the group and not sold to an external party. Therefore, the gain on the sale of land between affiliates should not appear in the consolidated income statement.

Gain on the Sale of Land Between Affiliates Should Not