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Consolidated statements

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Consolidated statements

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • August 12, 2022 at 4:00 am #662924
    johnbriane
    Member
    • Topics: 170
    • Replies: 159
    • ☆☆☆

    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

    August 12, 2022 at 6:46 am #662932
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    That 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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