The profit on an intragroup business transaction is 'realised' when:

A) the parent sells to the subsidiary.
B) the subsidiary sells to the parent.
C) there is involvement with an external party.
D) only entities within the group are parties to the transaction.

Intragroup Transaction

Intragroup transactions refer to transactions between entities within the same group, such as sales, services, or financing activities, which are usually eliminated in consolidated financial statements.

Realised Profit

Profit that has been actually earned and received, typically from the sale of goods, services, or assets.

External Party

An entity or individual that is outside of an organization and can include suppliers, customers, government agencies, and lenders.