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MC Question 14
Under certain circumstances, profits made on transactions between members of a group need to be eliminated from
the consolidated financial statements under IFRS.
Which of the following statements about intra-group profits in consolidated financial statements is/are correct?
| (i) | The profit made by a parent on the sale of goods to a subsidiary is only realised when the subsidiary sells the goods to a third party |
|---|---|
| (ii) | Eliminating intra-group unrealised profits never affects non-controlling interests |
| (iii) | The profit element of goods supplied by the parent to an associate and held in year-end inventory must be eliminated in full |
A (i) only
B (i) and (ii)
C (ii) and (iii)
D (iii) only