CAF-6 · Chapter 9 · Question 11 of 15
How are 'Intra-group balances' (like a loan from parent to subsidiary) treated on consolidation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) They are eliminated in full.
Explanation
To avoid double counting assets and liabilities of the group as a single economic entity, all intra-group receivables and payables must be eliminated.
More Consolidation (IFRS 10, IFRS 3) MCQs
- Q13Which of the following is NOT an 'Identifiable' asset for IFRS 3 purposes?
- Q14'Acquisition-related costs' (like legal and accounting fees for the merger) should be:
- Q15In a Consolidated Statement of Profit or Loss, the 'Profit for the year' is:
- Q1According to IFRS 10, an investor 'Controls' an investee if and only if they have:
- Q2Under IFRS 3 Business Combinations, the 'Acquisition Method' requires: