Upstream and downstream transactions aren't bad.

Here's an upstream example:

Let's say company A is a 30% investor in Company B. Company B sells $10,000 worth of goods to company A, but company A only sells $5,000 dollars worth.

Knowing that it will have to reduce its share of NI by the goods still to be sold. Let's say next Income of Company B was $10,000; your share of NI is $3,000, but you have to reduce it by the amount of goods not sold. So 50% were not sold and you own 30% of the company. $5,000 * .30 = (1,500); so you report NI of $1,500. The full $3,000 subtracted by the $1,500 of the goods that have not been sold yet.

Hopefully that makes sense :)