Taxation Interview Question:

Tell me about the inter company reconciliation?

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Every year commonly controlled company prepares a combined or consolidated financial statement for tax and reporting purposes. Inter Company
Reconciliation is the process that helps parent company to split from its subsidiaries companies by location. Each year, commonly controlled business must prepare a combined or consolidated financial statement for tax and reporting purposes. The inter company accounting process is an important process for parent companies with subsidiaries or companies split by location. Inter Company Reconciliation helps in avoiding double counting of transactions as it also helps in maintaining accurate reports. Even it helps the companies to avoid misrepresentation of a firm's financial position.
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