Group SFP – Example (PUPs) – ACCA Financial Reporting (FR)
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Why is the PURP of revenue 60k instead of it being at under cost, since we are doing James consolidated SOFP, isn’t this a costs under James ?
would the intra-group trading of 50,000 not be adjusted?
you removed the PURP Adj:(inventory/RE-sub) of 10k
would 50k on Consolidated SOFP, not be removed then from receivables and payables ??
please advise.
Intra group trading is removed from the P+L I think.
so as others have mentioned above..
would the intra-group trading of 50,000 not be adjusted?
you removed the PURP Adj:(inventory/RE-sub) of 10k
would 50k on Consolidated SOFP, not be removed then from receivables and payables ??
please advise.
Chris, why didn’t you deduct inter-company sales in current liabilities?
i’m so happy that i nailed this the 1st time around. thank you Chris. you are heavensent
At the time of sale of inventory of 120,000, both parent and subsidiary would have created receivable and payable at the time of sale. Why didn’t we reversed that? They would have created intra company balances.
Dr Payables (CL) 120,000
Cr Receivables (CA) 120,000
yeah i have the same doubt
Interco balances (r/p) are eliminated when consolidating i think right? so no point in reversing that
I would like to double check regarding the entry in the video
DR. RE of the seller 10
Cr Inventory 10
as the pearnt compny doesnt fully owned the subsidary the entry must as the following
Dr RE of the seller. 8 (10*80%)
Dr NCI 2. (10* 20%)
Cr Inventory 10
to me if you like you can do it this way, however, $10 as being removed from the total post acquisition profit before sharing like 250-10=240.
Also he forgot to state that the $50 remaining unsold is supposed to be deducted from inventory and receivables respectively.
You are correct in your understanding in that the PUP is split between the group and NCI. we take account of this by including it in the net asset working where we calculate the post-acquisition profits. The PUP is included within the post-acquisition profit figure so the adjustment you propose is automatically done when we take the post-acquisition profit figure to the NCI working and group retained earnings working.