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foreign [Music] sir Brian here today we will be discussing about inter company sales this topic is an extension of our discussion on Consolidated financial statements so before continuing watching this video I suggest that you watch our lecture videos on Consolidated financial statements update of acquisition and subsequent to data of acquisition the links are provided in our description box below okay now lets start our discussion of this topic by answering the question what are inter-company sales these are sales occurring between the parent and its subsidiaries since inter company sales are also inter-company transactions these sales must be eliminated now when preparing Consolidated financial statements unconsolidated financial statements transactions with Outsiders so any inter-company transactions between parent and its subsidiaries must be eliminated in the process of preparing your Consolidated financial statements acquisition is an inter-company transactions no so that is the