Which of the following statements regarding intra-group transactions is correct?Group of answer choicesIntra-group transactions are eliminated since they are not recognized by the Australian Taxation Office.Only upstream transactions need to be eliminated.Transactions that result in profits/losses being carried in assets of the parent or subsidiary need to be eliminated.Transactions that only create a balance between the parent and subsidiary need not be eliminated because there is no effect on group profit/loss.

Which of the following statements is incorrect?Group of answer choicesWhen adjustments for intragroup transactions affect the carrying amount of assets or liabilities, further adjustments are made for the tax effect of those adjustments.The profits or losses generated from intragroup transfers of assets are only considered realised from the group's perspective when those assets are transferred to external entities.Adjustments are determined by comparing the amounts recognised in the individual accounts affected with the amounts that the group should recognise.Adjustments are required for both prior period and current period intragroup transactions to the extent that the effects of those transactions are still present in the individual accounts of the entities involved.

Unrealised profits on an intragroup sale of inventories in a reporting entity group arise if: a. The sale is an upstream transaction. b. The sale is a downstream transaction. c. The inventories are no longer held within the group at the date of consolidation. d. None of the above.

Which of the following statements is incorrect?Group of answer choicesconsolidated profit arises only in relation to transactions with entities external to the group.consolidated liabilities are obligations to entities external to the group.consolidated revenues are earned only from transactions with entities external to the group.consolidated assets are recorded at the cost to the legal entity that owns them.

When eliminating an intragroup service, which of the following entries would appear in the consolidation worksheet entry? Group of answer choicesCR Income tax expense.DR Services revenue.DR Services expense.CR Deferred tax liability.

Which of the following is NOT possible for a business transaction?Group of answer choicesDecrease Liabilities and Decrease AssetsIncrease Assets and increase RevenueIncrease Liabilities and Increase Shareholder EquityIncrease Liabilities and increase Expense