The intragroup transactions considered for NCI are normally those involving:
A) the NCI selling inventories items or non-current assets to the parent for a profit or loss.
B) the parent selling inventories items or non-current assets to the subsidiary for a profit or loss.
C) the subsidiary selling inventories items or non-current assets to the parent for a profit or loss.
D) all of these options are correct.

Question

Quizplus · Accepted Answer

Intragroup transactions involving the subsidiary selling inventories items or non-current assets to the parent for a profit or loss are considered for NCI because they affect the subsidiary's profits and consequently the NCI's share of those profits. Options A and B involve transactions with the parent and may affect the subsidiary's profits, but they do not directly affect the NCI's share of those profits. Option D is incorrect because option A involves the NCI selling to the parent, while option B involves the parent selling to the subsidiary.

The Intragroup Transactions Considered for NCI Are Normally Those Involving