Question

Group companies normally trade with each other and are involved in other forms of business relationships. Discuss the impact that this will have on group performance and tell how these transactions are dealt with in the books of the group as a whole

Answer 1

Some of the impacts that will have on group performance:

• Cost cutting due to transfer pricing
• Revenue increase due to internal trading

The internal trading transactions will be separated from the reconciliation statements.

Step-by-step explanation: