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My Dear tutor, I have questions relating to intra-group trading resultng unrealised profit.
For instance if associate seifs goods to Pco do i need to take into consideration unrealised profit for deduction from profit after tax?if Pco sells goods to associate in that case we take into consideration unrealised profit but the above case do we consider or not?Thanks in advance
Watch the lectures!
Read the course notes!
It’s all in there, including the notification that my way of dealing with pups arising from transactions with associates is slightly different from the BPP / Kaplan way
My way … ALWAYS deduct the pup from the associate’s retained earnings, in full
The effect is to reduce the associate’s retained earnings for the year and thus reduce the group’s share of those profits
At the same time, because the associate’s results are being reduced, the figure for the group’s share of the associate’s post acquisition retained earnings is correspondingly reduced
Read the notes!
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