Which of the following statements regarding intra-group transactions is correct?

Group of answer choices

Transactions that only create a balance between the parent and subsidiary need not be eliminated because there is no effect on group profit/loss.

Transactions that result in profits/losses being carried in assets of the parent or subsidiary need to be eliminated.

Intra-group transactions are eliminated since they are not recognized by the Australian Taxation Office.

Only upstream transactions need to be eliminated.