Unrealised profitForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Unrealised profitThis topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts December 2, 2016 at 8:22 am #353079 @47@MemberTopics: 19Replies: 51☆☆When the parent company is transferring an asset to its subsidiary at a profit, we deduct this profit from the consolidated retained earnings and we also deduct the excessive depreciation from the consolidated retained earnings, right?? December 2, 2016 at 9:11 am #353106 MikeLittleKeymasterTopics: 27Replies: 23200☆☆☆☆☆No, not quiteWe deduct (in the seller’s column of working W3) the gain made on the transfer but we ADD back the excess depreciation, also in the seller’s columnAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In