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Discuss how intercompany transfers should be treated

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Reference no: EM131692006

Question - Many companies transfer inventories from one subsidiary to another subsidiary. Often the companies have integrated operations in which one subsidiary provides raw materials, another manufactures finished products and another distributes and perhaps another sells the product at retail.

Required: Discuss how intercompany transfers should be treated for consolidation purposes.

NB: make reference to the related IFRS's an IAS's in your discussion.

Reference no: EM131692006

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