Consolidation Related Questions & Intercompany Transactions

Related BrainMass Solutions

• Balancing Intercompany Payables and Receivables

  In a 300+ word solution, the three questions are carefully answered for better understanding of the impact of intercompany transactions.

• amount of depreciation

  Before you begin to answer the given questions, you may want to note certain general information as it relates to intercompany transactions.

• Intercompany transactions: why use them, what are types?

  274839 Intercompany transactions: why use them, what are types? Upstream and downstream. Why would a company engage in intercompany transactions? What are some types of intercompany transactions?

• Conducting Intercompany Transactions

  All of these are dealing with intercompany transactions.

• Eliminations of Intercompany Transactions

  Eliminations of Intercompany Transactions are examined.

• Intercompany asset transactions and consolidated financials.

  The amount of unrealized intercompany profit in ending inventory at Dec 31 that should be eliminated in the consolidation process is?

• Effects of Intercompany Transactions at Consolidation

  515545 Effects of Intercompany Transactions at Consolidation Chapter 5 introduces you to the intercompany sales of inventory, land, and depreciable assets as these transfers result in similar consolidation procedures.

• 285631 Eliminating unrealized intercompany profit on consolidation Eliminating unrealized intercompany profit on consolidation Unrealised profit = 80% of 20000 = $16,000 Workings Remaining Inventory = 50% of 100000 = 50000 Profit in remaining

• Differences between upstream and downstream inventory sale

  During consolidation, intercompany profit (for items not yet sold to parties outside the consolidated group) is eliminated since the two entities are treated as one economic entity and so can't make profit selling to themselves.