As Part of the Consolidation Process,any Unrealised Profits Arising from Intra-Group

Multiple Choice

As part of the consolidation process,any unrealised profits arising from intra-group merchandising transactions are eliminated.If the intra-group transactions are inter-segment transactions,the effect of this elimination on the segment data reported by subsidiaries will be to:

A) Reduce the relevant segment result reported by the subsidiary.
B) Have no effect on the segment result reported by the subsidiary.
C) Reduce both the segment result reported by the subsidiary and reduce the consolidated profit of the group.
D) None of the above.