Paragraph 5 Elimination of group transactions
(1)
Debts and claims between undertakings included in the consolidation, and income and expenditure relating to transactions between such undertakings, must be eliminated in preparing the group accounts.
(2)
Where profits and losses resulting from transactions between undertakings included in the consolidation are included in the book value of assets, they must be eliminated in preparing the group accounts.
(3)
The elimination required by sub-paragraph (2) may be effected in proportion to the group’s interest in the shares of the undertakings.