Sir,
In this example, the Associate (BF) sells goods to the Parent (TR). The answer is given as D. Why is answer C incorrect?
Thank you
Ask the Tutor ACCA FR
CH. 25 Example 3–PUP
5y ago#1Hi,
The direction of the sale is not taken into account for a PUP between the group and the associate using equity accounting. We will always process the PUP as shown in the class notes, where the credit is to the investment in associate.
Thanks
Sign into reply to this topic.