Which of the Following Statements Is Incorrect

question 32

Multiple Choice

Which of the following statements is incorrect:

• A) adjustments are required for both prior period and current period intragroup transactions to the extent that the effects of those transactions are still present in the individual accounts of the entities involved.
• B) adjustments are determined by comparing the amounts recognised in the individual accounts affected with the amounts that the group should recognise.
• C) when adjustments for intragroup transactions affect the carrying amount of assets or liabilities, further adjustments are made for the tax effect of those adjustments.
• D) the profits or losses generated from intragroup transfers of assets are considered realised from the group's perspective until such movement when those assets are transferred to external entities.

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Definitions:

Working Relationships

Interactions and connections between colleagues within a workplace that are based on the organizational context, which may influence collaboration, communication, and overall workplace atmosphere.

Implementation

The process of putting a plan, decision, or agreement into effect.

Organisation Chart

An organisation chart describes the arrangement of work positions within an organisation.

Superior-Subordinate Relationships

The dynamic between individuals with higher positions and those with lower positions within an organization's hierarchy.