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Understanding Intercompany Transactions by eferem is a document available to read on EtoBox.
An intercompany transaction is a transaction between affiliated companies within a company group. When preparing consolidated financial statements, intercompany transactions and balances must be eliminated. This includes eliminating equity from company acquisitions within the group, unrealized gains from intercompany inventory or asset sales, and intercompany profits and losses. Intercompany loans between affiliates also require eliminating the loan balances, interest income/expense, and receivable/payable.
- Author
- eferem
- Language
- EN