Expense and revenue consolidation


Using profit and loss consolidation, a group P&L (see profit and loss statement) is without of profit components which result solely from transactions between companies included in the group. The necessity of eliminating intra-group transactions comes from the one-entity theory, according to which the group's position concerning assets, finances profits must be represented as if the group were one single company.

Legal provisions: Article 305, German Commercial Code (Expense and profit consolidation)


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