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Good morning and Hope you are doing wrll
What about the treatment of loss of $5Mln (from following statement)?
{Vader sold goods to Maul for $20 million at fair value following the acquisition. Vader made a loss on the
transaction of $5 million and none of the goods sold had been sold outside of the group by year-end.}What do mean by the term Arms length? And why do not realise the loss ?
Thank you
Arms length – normal selling price as between unconnected third parties.
Please refer to
https://opentuition.com/topic/video-lecture-4-basic-group-structures-sploci-example/?view=all
for your other question.
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