08 December 2022
The Indian subsidiary company shows debtor of INR 60,000 receivable from Foreign Parent company but the Foreign Parent company shows creditor of eqv. amount of INR 50,000 , the difference is mainly due to some invoices that were recorded in Parent company at later date. Now while preparing Consolidated Financial statement , how to treat above inter-company adjustment ? Please advise
12 December 2022
Usually, such differences are identified as part of ICP reconciliations. The respective amounts accounted by parent and subsidiary only to be nullified in consolidation.
CAclubindia
