Parent Plc Sells Inventories to Child Plc Amounting to €200

question 27

True/False

Parent Plc sells inventories to Child Plc amounting to €200 000 during the financial year.The inventories are no longer in the hands of Child Plc at year-end.Parent Plc is no longer required to eliminate these intragroup transactions because these transactions have been realised by sale to external parties.

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Definitions:

Unconstitutional Conditions

The principle that the government cannot condition the receipt of a government benefit or the ability to participate in a government program upon the waiver of a constitutionally protected right.

Just Compensation

Refers to the compensation or remuneration required by law to be paid to an individual whose property has been taken for public use, ensuring the payment is fair and adequate.

Takings Clause

A provision in the Fifth Amendment of the U.S. Constitution that prohibits the government from taking private property for public use without "just compensation."

Fair Market Value

The price at which a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts and not under any compulsion, would likely agree to transact.