Acquisition Method - Business Combinations

[ElwoodRoller]

Under acquistion method, it says all of the assets, liabilities, revenues and expenses of the subidiary are combined w/ parents, but exclude intercompany transactions.
Can someone give me an example of an intercompany transaction?

 

[S2000magician]

The parent buys raw materials from the subsidiary.
Backward integration.

 

[olympria]

transactions between the investor and investee (acquirer and acquiree). Also, exclude only the portion of the transaction that still remains in either of their books. If a portion of the transaction has been realised through sales/revenue, then you dont have to reverse that.

 

[Spacecowboy1]

To avoid double counting, otherwise the revenues would show up twice in the financial statements