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09-15-2004, 10:34 PM
  #13
Fletch
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Join Date: Feb 2002
Location: Brooklyn
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It eliminates in consolidation...

the number reported nets [or should net] to exactly zero. But no auditor really cares what the number is, since the number reported goes to zero [for instance, in another life I had a company who was a sub of another but was a separate public entity - there was an intercompany receivable - the agreed upon audit procedure (per Deloitte & Touche) was a phone call to the parent to confirm the number, wihtout regard to whether or not it was fair]. Perhaps for tax purposes there are implications, but that number can be manipulated somewhat for favorable tax advantage.

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