Financial Terms: Downward Sales

fixed

The behavior of assets, intangible assets and issuance of bonds is called downward sales.

In the downside sale, the parent company has realized its income and carry over cost and recognised profit and loss on its account. However, from the view of the enterprise group, as long as the subsidiary company has not sold the inventory to the outside world, or the long-term assets purchased from the parent company, or the parent company bonds still purchased, there are always unrealized gains and losses or deductive gains and losses, and the unrealized gains and losses and presumptive gains and losses should belong to the parent company. Under the complex equity method, the investment income and the presumption gains and losses of the parent company need to be adjusted to the minority shareholders' profit and loss and minority shareholders.