True and Fair View in Individual Financial Statements in Comparison of Consolidated Financial Statements after Elimination of Intragroup Sales[Srovnání věrného a poctivého obrazu individuální účetní závěrky oproti konsolidované při vyloučení vzájemných prodejů ve skupině]

Availability of controlling interest enables parent entity to specify its subsidiary which sort of goods it may buy and from whom, to whom it may sell the goods and at what cost. Therefore, parent entity can transfer profits among entities included in its group according to its specific intention. On the one hand it is equal from the perspective of the parent entity which of the entities realized the profit because the presentation of consolidated profit or loss results from actual sells. Full consolidationmethod cannot avoid inadequate presentation of non-controlling interests on the other hand. The situation is more complicated in using the proportional method of consolidation. The proportional method distinguishes which entity realized profit from sale. Only part of the profit from the sale corresponding to the venturer's interest is allocated to the consolidated accounts in using of the proportional method. In proportional method isn't possible to divide out rightly the profit from the sale into both related parties even after elimination of intra-group balances and transactions. Therefore two consolidated financial statements prepared for the same group by proportional method of consolidation will differentiate depending on whether the seller of goods is joint controlled entity or venturer.