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Dear Sir,
I would like to ask when we calculate the changes in inventory specifically (generally working capital) in case the subsidiary is disposed, for example
01.01.20X1 The group’s inventory: 1,100
The Disposal of Group as at 01.05.20X1 and inventory of Sub as at 01.05.20X1 is: 100
31.12.20X1: The group’s inventory (P’s only): 1,500
So when we calculate the changes in inventory, it should be: 1,500 – (1,100 – 100 which is the inventory of Sub as at 01.05.20X1).
Is my understanding correct?
Yes
1100 at the start of which 100 disappeared when sub was sold = 1000
1500 at end
So change is 500
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