I need clarification with regard to how to treat an intra group trading b/n parent and subsidiaries group accounts during preparation of consolidated statement of financial position as well as income statement. I always confuse and need a clear guideline on how to treat it.
the subsidiary sold to the parent in the post acquisition period for an amount of $8million. The subsidiary made a mark up on cost of 40% on the sales. The Parent sold $5.2 million(at cost to the parent) of these goods. How should I adjust this situation when preparing consolidated Statement of Financial Position.
I need your advice and where can I find the standard which clearly show treatment of intra group trading.