# Elimination entry

> A group-level entry that removes balances and transactions between group companies.

Source: https://finconsol.com/blog/glossary/elimination-entry/ (updated 28 October 2026)

## Why does it matter in a group?

Without eliminations the group would count the same dealings twice: a sale in one company and a purchase in another, a loan in one and a debt in the other. The entry removes both sides together, so group profit and group assets show only dealings with outsiders.[1](#src-1) It is made in the consolidation, not in either company's books. Typical entries cover balances, [loans](/blog/glossary/intercompany-loan/), sales and purchases, [unrealised profit](/blog/glossary/unrealised-profit/), and each investment against the subsidiary's equity.

## A small example

Fernhollow owes Zenvara GBP 1,240,000. The elimination entry debits the payable in Fernhollow by 1,240,000 and credits the receivable in Zenvara by the same amount. The group accounts show nothing for the pair.

## Sources

## Sources

1. IFRS 10 [Consolidated Financial Statements](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-10-consolidated-financial-statements/), paragraph B86(c).