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Marchant june 2014 q1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Marchant june 2014 q1

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.
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  • Author
    Posts
  • March 19, 2018 at 10:45 pm #443057
    zkaay
    Participant
    • Topics: 212
    • Replies: 98
    • ☆☆☆

    Hi tutor,

    Could u explain the treatement/ adjustments for this( note 4)

    Marchant sold inventory to nathon for 12 million at fair value. Marchanet made loss on transaction of 3 million and nathon still holds 8 million in inventory at year end.

    March 23, 2018 at 9:00 pm #443631
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    Hi,

    Yes, as the inventory was sold for its fair value then the loss is not adjusted for within the group accounts, and is left in as it reflects the true value of the transaction.

    Thanks

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