Treatment of revenue while preparing consolidate accounts

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Manish Gupta (Querist)
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06 August 2012 A case where A holding company form a SPV to execute the road construction contarct. Under this arrangement, SPV awards the EPC contarct to the holding company. Holding company receives the revenue from EPC.

In this case while making the consolidate account do we substract the revenue received from SPV as intersegment revenue or not?

Amol S Joglekar

Amol S Joglekar (Expert)
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06 August 2012 The transfer pricing is important. If it is inclusive of profit then no need to delete the amount in inter segment. If it does not involve any profit element (which is hard to believe), then you need todelete.

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