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Hi John,
I came across one or two issues when doing consolidated balance sheets . Firstly what is the current account between two companies ?, Secondly when consolidating the inventories for the two companies why do we take away the unrealised profit rather than the remaining cost of the inventory remaining?
Thanks
The current account exists when one company owes money to the other. There is a receivable in one company and a payable in the other – we call these the current accounts.
With regard to the unrealised profits, you need to watch our free lectures on this – I cannot type out the whole lecture here 🙂
Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.
Okay that makes sense .
Ah I get it now was starting to panic I have the f3 exam on Friday
Thank you again 🙂
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