Inter-company transaction in Consolidation of Financial Statement

vijay (Accountant) (902 Points)

08 December 2022  

The Indian subsidiary company shows debtor of INR 60,000 receivable from Foreign Parent company but the Foreign Parent company shows creditor of eqv. amount of INR 50,000 , the difference is mainly due to some invoices that were recorded in Parent company at later date. Now while preparing Consolidated Financial statement, how to treat above inter-company adjustment ? Please advise