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Multiple Subsidiaries-Are elimination accounts always needed?
Hi There
I can't seem to find a conclusive answer online or in the help guides of whether an elimination account is always required when there are multiple subsidiaries?
The scenario in question is of a parent firm in NZ with subsidiaries in other countries such as Australia, Japan and USA
The Australian, Japanese and USA subsidiaries only have the following types of transactions with the NZ parent subsidiary:
The NZ parent subsidiary may transfer funds to their bank accounts in order to allow them to pay their local staff
The entry would be:
NZ Subsidiary
Dr Suspense account $xxNZD
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