Which of the Following Is NOT a Requirement for Intragroup

question 48

Multiple Choice

Which of the following is NOT a requirement for intragroup transactions under IFRS?

• A)Whenever related entities transact with each other, the separate legal entities disclose the effects of these transactions in the revenues and expenses reported as well as assets and liabilities as required.
• B)Deferred tax accounts must be created where there are temporary differences between the carrying amount of an asset or a liability and its tax base.
• C)The process of consolidation involves adding together the financial statements of a parent and its subsidiaries to reflect an overall view that includes the results of the group transactions with external entities and also within the group.
• D)Adjustments must be made to eliminate intragroup balances and the effects of transactions whereby profits or losses are made by different members of the group through trading with each other.

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Definitions:

Multidisciplinary

Involving multiple academic disciplines or professional specializations in an approach to a topic or problem.

Clinical Psychology

A branch of psychology focused on diagnosing and treating mental, emotional, and behavioral disorders.

Autism

A developmental disorder characterized by challenges with social interaction, communication, and by restricted and repetitive behavior.

Passive

Characterizing a lack of active response or action, often allowing others to dictate situations or outcomes.