Explain the process by which assets are written up (or down) on intercompany asset transfers and...

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Accounting

Explain the process by which assets are written up (or down) onintercompany asset transfers and why GAAP prohibits the recognitionof profit in the intercompany transfers of assets. Please cite yoursources so I could read into them too

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Disposal of inter company income and costs resources and liabilities Deal and buy exchanges brought about between the auxiliary organizations stock exchanges made amid the reporting period from one backup companyunit and such stock being in unsold condition lying in the books of another auxiliary companyunit including undiscovered benefit component intra amass accounts receivables and records payables and so on are particular kinds of exchanges which are required to be expelled from solidified preliminary equalization loving the Business Entity Concept Certain occasions likewise offer ascent to a few exchanges which will be invalid according to Business Entity idea for example mergers and one company being consumed by another It is profoundly basic in such case to tidy up the united records to agree to the relevant GAAP and furthermore to respect the substance over frame where one cant make benefits from his very own exchanges ID of Intercompany exchanges ID of intercompanyinterunit exchanges can be a troublesome errand seeing the lakhs and crores of exchanges acquired all through a monetary year In light of this it is fitting to the administration to set See Answer

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Explain the process by which assets are written up (or down) on intercompany asset transfers and...

80.2K

Verified Solution

Question

Accounting

Explain the process by which assets are written up (or down) onintercompany asset transfers and why GAAP prohibits the recognitionof profit in the intercompany transfers of assets. Please cite yoursources so I could read into them too

Answer & Explanation Solved by verified expert

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