Group SFP - NCA PUPs - ACCA Financial Reporting (FR)
3 Comments
G
Gav·
why do we not remove the unrealised profit when removed the inventory or NCA?
K
Kamran·
PPE is usually not sold to make a profit. The subsidiary will be using it in their operations
B
brianzulu1717·
Let say we were reporting in the following year and p is the one that sold the asset can we adjust for the sale of non current asset as:
Dr PPE with the excess depreciation
Cr excess depreciation to w2 of the subsidiary in the at reporting date column
Dr p's retained earnings unrealised profit
Cr PPE unrealised profit
Dr PPE with the excess depreciation
Cr excess depreciation to w2 of the subsidiary in the at reporting date column
Dr p's retained earnings unrealised profit
Cr PPE unrealised profit