Question 5 Under certain circumstances, profits made on transactions between members of a group need to be eliminated from the consolidated financial statements under IFRS. Which of the following statements about intra-group profits in consolidated financial statements is/are correct? (i) The profit made by a parent on the sale of goods to a subsidiary is only realised when the subsidiary sells the goods to a third party. (ii) Eliminating intra-group unrealised profits never affects non-controlling interests. (iii) The profit element of goods supplied by the parent to an associate and held in year-end inventory must be eliminated in full. A (i) only B (i) and (ii) C (ii) and (iii) D (iii) only ---End of section A-------- 2 2