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Intragroup transactions

Sales and debts between companies of the same group. They are eliminated on consolidation so that the group cannot earn from itself.

How to read the number

The sum of the subsidiaries' revenues is almost always larger than the group's revenue — by exactly the eliminated amount.

When the metric lies

In the standalone accounts of each legal entity under Russian standards these turnovers remain. Adding up subsidiary revenue from those accounts and comparing it with the IFRS group is invalid.

Also known as: intercompany eliminations

Related terms