Tuesday, November 25, 2008

#56 Inter-company confirmation

Intercompany confirmation have to be sent out to respective inter-company in order to confirm the outstanding balance due from/ due to inter-company. Discrepancies have to be reconciled immediately.

Discrepancies on inter-company balance could impact the Group figure during group consolidation. To illustrate, difference on inter-company balance on respective inter-company's book could resulted in inter-company balance not fully eliminated at Group level. If the discrepancies are significant, the Group account is likely to be eliminated.

Hence, it is important to ensure that inter-company balances are reconciled properly.

2 comments:

Anonymous said...

You're awesome! Thanks for the info :)

Anonymous said...

yes, you're amazing. thx a lot..