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Intercompany Elimination Calculator

Generate consolidation journal entries for the four most common intercompany eliminations — trading, loans, unrealised profit in inventory, and dividends. Journal entries and consolidated impact calculated automatically. Built for group accountants.

The Four Intercompany Eliminations

IFRS 10 requires all intragroup transactions, balances, income, and expenses to be eliminated in full on consolidation. These are the four most common types every group accountant encounters.

1. Intercompany Trading

Eliminate revenue recorded by the selling entity and the corresponding cost recorded by the buying entity. Net profit impact: nil.

2. Loans & Interest

Eliminate the loan receivable against the loan payable, and eliminate interest income against interest expense. Balance sheet and P&L both reduce.

3. Unrealised Profit

When transferred goods remain in the buyer's closing inventory, the seller's profit is unrealised from the group's perspective and must be deferred.

4. Dividends

Eliminate the parent's share of subsidiary dividends — dividend income against dividends paid. NCI's share is a real payment and is not eliminated.

Intercompany Elimination Workpaper

Work through each elimination type — journal entries and consolidated impact are generated automatically. Use the Summary tab for a combined view.

Intercompany Sales
$
Why eliminate? Without elimination, group revenue and group expenses are both overstated by the same amount. The transaction is internal — it must disappear on consolidation.
Elimination Journal Entry
Loan Balance
$
Interest (if applicable)
$
Two separate entries: (1) Eliminate the loan balance — receivable against payable. (2) Eliminate interest — income against expense. Each is independent; set interest to 0 if the loan is interest-free.
Elimination Journal Entries
Transfer Details
$
$
Closing Inventory
% of transferred goods still in buyer's inventory 40%
Elimination Journal Entry
Dividend Details
$
Parent Ownership % 80%
Only the parent's share is eliminated. The NCI's share of the dividend is a genuine cash outflow to third parties — it is not eliminated.
Elimination Journal Entry

Combined view of all eliminations entered across the four tabs. Figures update in real time as you adjust inputs.

Elimination Account Debited Account Credited P&L Impact B/S Impact

Net Consolidated Impact

Total P&L Reduction
Revenue and income eliminated
Total B/S Reduction
Asset and liability lines eliminated
Profit Reduction (net)
URP and interest — real P&L impact

⚠ Notes for group accountants

This calculator covers the most common eliminations using simplified models. In practice: (1) unrealised profit in prior-year inventory is eliminated against opening retained earnings, not current-year P&L; (2) where the selling entity is a subsidiary with NCI, the URP elimination must be split between the parent's and NCI's share per the group's accounting policy; (3) foreign-currency intercompany loans require exchange differences to be recognised; (4) management fees and other intragroup charges follow the same logic as trading eliminations. Always prepare eliminations in a formal consolidation workpaper with an audit trail.

Stop doing eliminations manually. Let BrizoConsol handle them.

BrizoConsol identifies intercompany balances across all entities automatically and eliminates them on consolidation — with a full audit trail for every entry.

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