elimination adjustments
[/ɪˌlɪmɪˈneɪʃən əˈdʒʌstmənts/]
nounpl: elimination adjustments
ajustes de eliminação
1. Accounting entries made to remove the effects of inter-company transactions when preparing consolidated financial statements
Elimination adjustments were necessary to remove the $500,000 inter-company sale from the consolidated balance sheet.
Ajustes de eliminação foram necessários para remover a venda entre empresas de $500.000 da demonstração financeira consolidada.
2. Adjustments recorded to eliminate duplicate assets, liabilities, equity, revenue, or expenses resulting from transactions between subsidiaries or affiliated entities
The auditors required elimination adjustments to account for the inter-company loan between the parent and subsidiary.
Os auditores exigiram ajustes de eliminação para contabilizar o empréstimo entre empresas entre a matriz e a subsidiária.
3. Journal entries used to consolidate financial statements by removing inter-company balances and profits
Proper elimination adjustments ensured that the consolidated financial statements did not overstate revenues.
Ajustes de eliminação adequados garantiram que as demonstrações financeiras consolidadas não superestimassem as receitas.
Elimination adjustments are a critical component of consolidation accounting in both Brazilian (following IFRS) and American (GAAP) accounting standards. These adjustments are particularly important for multinational corporations and conglomerates with multiple subsidiaries operating in Brazil, Portugal, and the USA. The terminology is consistent across different English-speaking and Portuguese-speaking accounting communities, making it a universally recognized accounting practice.
Related Idioms & Phrases
to consolidate the accounts
to wipe out inter-company transactions
to clean up the balance sheet
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