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.

41. Which of the following would result in an unrealised profit within a group scenario? A A parent sells a building originally costing $800,000 to its subsidiary for $900,000. The subsidiary still holds this asset at the date of consolidation. B A parent sells a building originally costing $800,000 to its subsidiary for $900,000. The subsidiary has sold this asset before the date of consolidation. C A parent sells goods which originally cost $14,000 to its subsidiary for $18,000. The subsidiary has sold all of these goods at the date of consolidation. D A parent sells goods which originally cost $14,000 to an associate for $18,000. The associate has sold all of these goods at the date of consolidation. 42. Which of the following explains the value that relevant information contains? A Instructive value B Fair value C Confirmatory value D Approximate value 43. Which of the following is an example of following the principle of faithful representation? A Showing lease payments as a rental expense B Being prudent by recording the entire amount of a convertible loan as a liability C Creating a provision for staff relocation costs as part of a planned restructuring D Recording a sale and repurchase transaction with a bank as a loan rather than a sale 44. A forum for consultation with parties affected by the work of the International Accounting Standards Board is provided by: A The International Financial Reporting Interpretations Committee B The IFRS Advisory Council C The IFRS Foundation D The IFRS Consulting Committee 45. Which of the following criteria need to be satisfied in order for an element to be recognised within the financial statements? (i) It meets the definition of an element of the financial statements. (ii) Recognition provides relevant information. (iii) Recognition provides a reliable measure. (iv) The element has fair value. (v) Recognition provides faithful representation of the element. A (i), (ii) and (v) B (i), (iii) and (v) C (i), (ii) and (iv) D (i), (iii) and (iv) give me only the correct options no explanation

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.

The tax effect of eliminating the unrealised profit from an intragroup sale of inventories and adjusting the value of the inventories on hand is recognised as:Group of answer choicesa decrease in deferred tax liability.an increase in income tax expense.an increase in deferred tax liability.an increase in deferred tax asset.

“While intra group transactions within a consolidated group do not greatly impact its consolidated financial statements, they can have a significant effect on the respective single entity financial statements”. Discuss this statement. Include examples from the Wesfarmers Group in your group's presentation.

. How is profit prior to incorporation treated as ?