Inter-Company Transaction Tutorials

Name: Inter-Company Transaction Tutorials
Rating: 4.5 (119 reviews)

Learn inter-company important financial accounting concept, its methods and impact

Created byEDUCBA Bridging the Gap

Last updated 11/2023

English

English [Auto],

What you'll learn

Meaning of Subsidiary, Associate and Joint Venture as per IFRS
Types of intercompany profit transactions
Unrealized Losses – downstream & upstream sale
Lateral transactions

Course content

4 sections • 13 lectures • 1h 46m total length

Introduction to Intercompany Transactions8:07
Explore IFRS-based intercompany profit concepts, including subsidiaries, associates, and joint ventures, and downstream, upstream, and lateral transactions, with entries and consolidation adjustments to eliminate unrealized profits and losses.

Example of Downstream and Upstream Sale of Goods11:35
Explore how downstream and upstream sales between ABC and its subsidiaries X, Y, Z affect consolidation, including unrealized profit elimination, impact on consolidated inventory, and the role of non-controlling interest.
Example of Partial Sale Sold to Third Parties11:43
Analyze downstream and upstream inter-company sales, and learn how to eliminate unrealized profit in consolidation. Understand the impact of partial external sales and non-controlling interest on inventory and profit allocation.
Example of Sales with Associates6:32
Explore equity method accounting for associates with a 30% stake, including how intercompany profits from parent to associate are recorded, reversed in consolidation, and dividends treated as investment returns.
Example of Joint Ventures6:09
The lecture covers equity method treatment for associates and joint ventures under IFRS IAS 28, reversing unrealized profits to the investor’s share (30%/50%) and consolidating accordingly.
Example of Depriciable Asset Sale9:32
Explore how to handle inter-company sale of a depreciable asset between parent and subsidiary, including reversing unrealized profit, accounting for depreciation, and recognizing gain on sale in consolidation.
Example of Depriciable Asset Sale Continues7:41
Learn to eliminate unrealized profits and intercompany balances in consolidation of sales, using entries that debit accounts payable and credit accounts receivable, while accounting for investor shares and minority interests.
Unrealised Sale Losses Example11:54
Explore unrealised sale losses in intercompany transactions, including downstream and upstream scenarios, and learn consolidation adjustments for inventory, consolidated PNL, and investor share in associates.
Lateral Transactions Example6:17
Explore lateral intercompany transactions within a group and how upstream profits from subsidiary to subsidiary are reversed in consolidation, allocating to parent ownership and non-controlling interests while adjusting inventories.
More on Lateral Transaction6:21
Explains how to consolidate inter-company transactions, reverse unrealized profits in inventory and investments, apply the equity method for associates and ventures, and adjust for upstream and lateral transactions.

Challenges and Complexities in Organizations7:42
Explore the challenges and complexities of intercompany transactions in multinational organizations, including consolidation, unrealized profits, currency translation, and the role of automation in reconciliation and elimination.
Conclusion of Intercompany Transactions6:14
Explore IFRS concepts of subsidiaries, associates, and joint ventures and learn how downstream, upstream, and lateral intercompany transactions and unrealized losses are consolidated.

Requirements

Foundation knowledge of Accounting terms

Description

Inter-company Transaction Tutorials:

A non-controlling interest (NCI) refers to a type of investment in a company in which the investor has no or little control over that company. Through this training you shall understand an important financial accounting concept, its methods and impact. All the concepts are explained extensively by the use of various case studies for the purpose of deep and insightful understanding. Through these tutorials we shall brush upon the very basic of management accounting and how to take decisions related to it. The training has been taken with the help of practical illustrations and examples to understand the topics better. Management Accounting as the definition goes is the recording of all the costs incurred in a business in a way that can be used to improve its management.

The training will include the following;

Introduction - Meaning of Subsidiary, Associate and Joint Venture as per IFRS
Types of intercompany profit transactions
Examples

Downstream Sale of Goods
Upstream Sale of Goods
Downstream Sale of Goods – Partially sold to third parties
Upstream Sale of Goods - Partially sold to third parties
Sale to/by Associate
Sale to/by Joint Venture
Downstream Sale of depreciable asset
Upstream Sale of depreciable asset
Unrealized Losses – downstream & upstream sale
Lateral transactions

Conclusion
Self Test

Target Customers:

Accountants
Cost Accountants
Tax consultants
Students

Pre-Requisites:

Foundation knowledge of Accounting terms
Passion to learn and apply

Who this course is for:

Accountants, Cost Accountants, Tax consultants, Students

Inter-Company Transaction Tutorials

What you'll learn

Explore related topics

Course content

Introduction1 lecture • 8min

Types of Intercompany Transactions1 lecture • 7min

Example9 lectures • 1hr 18min

Challenges and Conclusion2 lectures • 14min

Requirements

Description

Who this course is for: