Where a Subsidiary Records a Gain on the Intragroup Sale

question 45

True/False

Where a subsidiary records a gain on the intragroup sale of a non-current depreciable asset to another entity within the group, NCI adjustments are required in relation to both the gain on sale as well as the consequential depreciation adjustments resulting from the group's continued use of the asset.

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Definitions:

Performing

The act of carrying out or accomplishing tasks, actions, or performances as required or expected.

Discharged

In legal terms, this means that a debt has been paid off or obligations have been fulfilled, releasing the debtor from further responsibilities.

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract, outlining terms and conditions of a relationship.

Material Breach

A significant violation of a contract that justifies termination of the agreement by the other party.