NCI at the reporting date

Intra-group trading

In a group of companies, they can have trade relations with each other. For example, company

A buys goods for one price and sells them to another company inside the group for another

price. Thus, company A has earned some revenue from selling, but the group as a whole didn't

make any profit out of that transaction. Until those goods are sold to an outsider company, the

group has unrealised profit.

Consolidated financial statements are the "financial statements of a group in which the assets,

liabilities, equity, income, expenses and cash flows of the parent company and its subsidiaries

are presented as those of a single economic entity", according to International Accounting

Standard 27 "Consolidated and separate financial statements", and International Financial

Reporting Standard 10 "Consolidated financial statements".[1][2]