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You’re consolidating as a group and in turn the group has not realised that profit as you’re considering it as one entity. In turn the unrealised profit is stripped out as it could distort the accounts (sell to self at an inflate price/ price you desire to manipulate the figures). I hope this helps
This is due to the property. The fair value is £5m and the CV is only £3m so the PPE essentially needs to be uplifted by 2m Dr PPE CR Retained Earnings. If this makes sense. In the other part nothing was in the revaluation reserve so goes straight to P&L
Sean, The provison confused me as well. I assumed given that it was at the date of acquisition it was included in the goodwill calculation also. Not sure whether that was the right thing to do. I did the same as you for question 31. I found the multiple choice quite tricky with some question types I didn’t see in the bpp kit. Phil