Intercompany Profit on Fixed Assets refers to the unrealized profit generated from transactions involving fixed assets between entities within the same corporate group. This profit must be eliminated during consolidation to ensure accurate financial reporting. In the context of intercompany definition accounting, it highlights the need for adjustments to prevent overstating asset values and income. This term is crucial for maintaining the integrity of consolidated financial statements.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
