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Consolidated Statement of Profit and Loss

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Consolidated Statement of Profit and Loss

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by mrjonbain.
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  • March 21, 2018 at 1:36 pm #443248
    domomum
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Hi,

    Need some clarification for inter-sales elimination regarding to time difference. Eg, if parents recorded the sales this year and subsidiary only record it in the next year. How should the elimination be done?
    Appreciate if someone can explain it with simple double entry.

    March 21, 2018 at 5:08 pm #443288
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2425
    • ☆☆☆☆☆

    Not sure this would be asked in exam situation.However,I think it would involve following adjustments in order to create consolidated accounts-
    Debit sales- inter group sale
    credit profit and loss-unrealized profit.
    Hope this helps.

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