Unrealised profit
From ACT Wiki
1. Group accounting.
From an accounting group’s perspective, profit may be unrealised when goods have not yet been sold external to the group, even if they have been sold from one group company to another.
2. Company law and financial reporting.
More broadly, any profit whose realisation in the form of cash, or other assets readily convertible into cash, is not yet sufficiently certain to allow its recognition as an item of profit in financial statements.
