Professional Documents
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FINANCIAL
STATEMENTS
INTRAGROUP PROFITS AND LOSSES
INTRODUCTION
Transactions between a parent company and subsidiary.
Upstream
sale
Subsidiary
Parent
Company
Latera
l sales
Downstrea
m sale
Subsidiary
INTRAGROUP SALE OF
MERCHANDISE (INVENTORIES)
Intragroup sales of merchandise involves a parent
company and one or more of its subsidiaries.
Downstream intragroup sales of merchandise
(Parent - - - Subsidiaries)
Upstream intragroup sales of merchandise
(Subsidiaries - - - Parent)
Lateral intragroup sales of merchandise
(Subsidiaries - - - Subsidiaries)
P300
P300
50
50
50
50
P300
P300
Less COGS/COS
inventories, beg.
purchases
P100
100
Goods available
less inventories, end
Gross Profit
P100
100
200
50 150
P150
200
100 100
P200
P50
Sales
P50
300
4.
300
Accounts Payable
Accounts Receivable
50
50
50
50
P300
P300
Less COGS/COS
inventories, beg.
purchases
P100
100
Goods available
less inventories, end
Gross Profit
P150
100
200
50 150
P150
250
100 150
P150
xx
xx
xx
retained