if we value inventory at latest invoice price how would it include unrealised profit ?
It wouldn’t. Why do you think it would? (NB audit of groups is not on the F8 syllabus).
it has been described at bpp text book at pg-257 that a valuation may include unrealised profit if inventory is valued at latest invoice price .
I don’t have their text book and don’t understand what they mean – except if the inventory had been sold by one division to another. Then there could be unrealised profit.
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