Define an upstream transaction and provide an example

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Upstream vs. Downstream Transactions

In dealing with intercompany transactions the direction matters. These directions are known as an upstream transaction or a downstream transaction. Please consider the following questions:

• Define an upstream transaction and provide an example.

• Define a downstream transaction and provide an example.

• Are the transactions substantially different? Please justify the reason why each transaction is treated differently.

Reference no: EM13922416

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