FUNDAMENTAL PRINCIPLES OF SIMPLE CONSOLIDATION

 

Treatment of unrealized profits

 

When goods are sold by one company in the group to another at a price which includes profit, and any such goods are remaining unsold on the date of balance sheet, there will be unrealized profit. Such profits may be eliminated from the stock and from the profits may both from the interest of majority and minority share holders in proportion to their interest.

 

 

 

 

 

Holding company accounts by Mrs.Latha