[Zornitsa]

Hi,

may I asked about how to account for the intra group transactions between investor and associate of depreciable assets? Is it calculated by the same way as subsidiary:
if the investor sales to associate – the adjustment Is made:
Dt Group retained earnings
Kt Investment in associate
And where is this going in the statement of Profit or Loss? As a reduction in Cost of sales or share profit of associate.
and if the associate sales to investor – the adjustment is made for:
Dt Group retained earnings
Kt Non-current assets
Thank you!

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