What are Intercompany Eliminations in Annual Reports? 🤨

Added: 2026-05-19

[00:00:00]But, this is really left pocket, right pocket, because they are all under the same.

[00:00:04]So, essentially, when they go and do the full annual report and and produce the numbers, they need to pick out this $100 revenue from A and the $100 expense from the parent, because there is no real additional benefit to the entire It's just sellings, transactions between the group itself, right? So, that's why they need to go and take away. So, you can see This is a bit small, but this is a less intercompany So, less means minus.

[00:00:31]So, for my numbers, I need to go and minus off a certain amount that is transactions within the company that doesn't change anything, because it's all intercompany, right? So, I need to take this away and remove the effects. So, uh this is something that you might commonly see in annual reports. Uh not just only SPS listed company in the overseas, uh let's say you look at US companies' 10-K report, you will find also these kind of uh transactions for intercompany relations.