Consolidated Statement of Profit and Loss

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March 21, 2018 at 1:36 pm #443248
domomum
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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
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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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