CERTYNEX IFRS ACADEMY

A group company sells goods to another group company, and some of the goods are still in inventory at the reporting date. What must be eliminated in the consolidated financial statements?

The intragroup revenue, the profit contained in the remaining inventory staying in the value of consolidated inventory.

The unrealised profit on the remaining inventory, the intragroup income and expenses remaining shown in consolidated profit or loss.

The intragroup revenue and expenses, together with the unrealised profit contained in the inventory still held.

The part of the sale's profit corresponding to the non-controlling interests in the selling company, the remainder being kept.