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Differnece between one sided and two sided elimination

Hi,

I've a basic question. Could you explain what is the difference between these two types of eliminations. I understand that generally we use one sided elimination for P&L and two sided elimination for BS is that true?

Regards,

SSC

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1 Answer

  • Posted on May 20, 2008 at 07:47 PM

    In either case, the results from reporting are the same. With 1-sided, there is only one single set of accounts for which all balances with trading partner are eliminated with the offset to the differences account.

    With 2-sided there are two sets of accounts for which the balances with trading partner are eliminated with the offfset to the differences account.

    With 2-sided there are a few more options regarding which company receives the differences. But in all cases the reported results are the same.

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