AASB 10 Consolidated Financial Statements, requires that the effect of intragroup transactions be:

Question

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AASB 10 requires that intragroup transactions be eliminated in full on consolidation, as they represent artificial transactions that do not affect the economic reality of the group as a whole. This means that the accounts of the parent and subsidiary must be adjusted accordingly so that the consolidated financial statements reflect the financial position, performance and cash flows of the group as a single economic entity.

AASB 10 Consolidated Financial Statements, Requires That the Effect of Intragroup