Why is it necessary to make adjustments for intra group transactions?

Adjustments for intra-group transactions are necessary to ensure accurate financial reporting and compliance with accounting standards. These transactions can distort consolidated financial statements by inflating revenues and profits, leading to misleading assessments of a group's overall financial performance. By eliminating these effects, companies provide a clearer picture of their true economic position, enhancing transparency for stakeholders. Moreover, such adjustments help avoid issues related to tax compliance and transfer pricing regulations.