The 2002 accounts of BorsodChem Rt state:

Basis of consolidation All material inter-company accounts and transactions have been eliminated on consolidation.

(a) Discuss three examples of inter-company (also referred to as intra-group) accounts.

(b) Explain what is meant by ‘have been eliminated’.

(c) Explain what effect there could be on the reported group profit if inter-company transactions were not eliminated.