Describe the process by which constructive gains on intercompany bonds are realized and recognized on the books

Question:

Describe the process by which constructive gains on intercompany bonds are realized and recognized on the books of the affiliates. Does recognition of a constructive gain in consolidated precede or succeed recognition on the books of affiliates?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...