FDM.2:5.2 - A reporting group and an internal amount

Suppose the reporting practitioner has established the reporting basis and period and determined that P and S are consolidated for that report. Their aligned standalone accounts include P’s receivable of 40 from S and S’s corresponding payable of 40. The supplied consolidation treatment eliminates that internal pair in the group view.

Preserve the two entities’ own claims for a separate question about S’s payment. The reporting adjustment does not discharge S’s obligation. If the reporting boundary has not been determined, ask for the missing determination; do not infer the same elimination merely because P and S share a founder.