Dear sir
When preparing the consolidated income statement
It is only when subsidiary sells goods to parent we deduct the unrealized profit from profit for the year of subsidiary and multiply with the NCI proportion.
But when parent company sells goods to subsidiary, we simply consider the subsidiary profit for the year and multiply with the NCI share.
Is this correct
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Consolidated statements
3y ago#1That is correct as far as the subsidiary is concerned.
When the parent sells to the subsidiary, the PURP is subtracted from the parent's profit.
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