Upstream Transaction
An upstream transaction occurs when a subsidiary sells goods or services to its parent company. In consolidated financial statements, unrealised profits from such transactions must be eliminated to avoid overstating group income. Proper treatment ensures the consolidated accounts reflect only profits earned from external parties.
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Utilization Rate
Utilization rate measures how effectively a company uses its available resources, such as labour hours or machinery capacity. It is…
Usury
Usury refers to the practice of charging excessively high interest rates on loans beyond legally permitted limits. While primarily a…
Understated
Understated describes a situation where an asset, income, or equity figure is recorded at a value lower than its actual…
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