Intercompany transaction

INTERCOMPANY TRANSACTION - Transaction carried out between two units of the same corporation.
INTERCONNECTION - 1. Any of the five subdivisions of the North American electric power system: Eastern,...

With regard to intercompany transactions, upstream transactions are those that occur when the subsidiary sells goods up to the parent.
Upstream costs
Upstream costs are those costs associated with processes and costs of suppliers.

The cash method farmer would sell its grapes to the winery as a deferred intercompany transaction, expensing its farming costs in the year paid, and postponing recognition of the grape sales until the year the wine was sold.

The United States has extensive regulations dealing with consolidated returns.[35] One such rule requires matching of income and deductions on intercompany transactions within the group by use of 'deferred intercompany transaction' rules.

Intercompany transactions are eliminated in a combined statement.
in governmental accounting, statement in which the balance sheets of all fund and account groups are shown without interfund transfers being eliminated ...

Loan made by one unit of a corporation to another unit of the same corporation.
Intercompany transaction
Transaction carried out between two units of the same corporation.
Interdelivery spread ...

Instead, consolidated statements also reflect the elimination of intercompany transactions. Consolidated statements disregard the distinction between separate legal entities and treat a parent firm and its subsidiaries as a single economic entity.

have divisional profit incentives, causing managers working for the same corporate parent to debate the costs assigned to their respective units. Such consolidated enterprises often have established rules about pricing of intercompany transactions.

INTERCOMPANY TRANSACTIONS Transactions between members of an affiliated group filing a consolidated return; gain or loss is deferred until a property is disposed of outside the group.

See also: Expense, Intercompany loan, Funding, Systematic risk, Unsystematic risk