unrealised profit
FRS 102 Associates and Joint Ventures: The Equity Method for UK Multi-Entity Groups
A UK manufacturing group held a 35% stake in a specialist components supplier for eleven years, accounting for its share…
Unrealised Profit in Inventory: How to Eliminate Intragroup Margins From Closing Stock at Consolidation
When one group entity sells goods to another, the selling entity records a profit on that sale. From the perspective…
Intercompany Revenue Eliminations: How to Remove Intragroup Sales From the Consolidated P&L
It was the first time Omar had run the group consolidation on his own. He pulled the trial balances from…
Intercompany Staff Secondments in a Professional Services Group: How the Margin Hides in WIP and What to Do About It
Professional services groups routinely second staff across entities. A shared services centre provides analysts to a client-facing consulting firm. A…
Intercompany Eliminations When There Is a Non-Controlling Interest: Upstream, Downstream, and Lateral Sales
When every subsidiary in a group is wholly owned, intercompany eliminations are mechanically straightforward: the full profit on any intragroup…
Central Buying Office Stock Eliminations in a Retail Group: Unrealised Profit, Multi-Category Margins, and the NRV Test That Changes at Consolidation
Most retail groups of any scale have separated their buying and sourcing function from their retail operations. The buying office…
The Margin Hidden in Your Closing Stock: Eliminating Unrealised Intercompany Profit in F&B Group Consolidation
When Priya, the group finance director of Latitude Food Group, prepared the December consolidation, the gross margin looked wrong. The…
The Profit That Isn’t There: Eliminating Unrealised Intercompany Margins in a Manufacturing Group
It was the kind of discrepancy that looks small until you trace it back. The group finance manager at a…
Intercompany Eliminations: A Complete Guide for Group Consolidation
When a parent company sells goods to its subsidiary, both sides of that transaction end up in the accounting records.…
Financial Consolidation for Manufacturing Groups: Clean Group Accounts Across Factories, Subsidiaries and Distribution Entities
The group financial controller of a mid-sized UK manufacturer laid out the problem simply. His group had four legal entities…