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Please guide me regarding treatment of interco. Transaction(sale of inventory) between two subsidiaries (lateral transactions).
For example a 75% Subsidiary sold goods to 80% subsidiary. Closing inventory is (say) 1500 of which 300 is unrealised profit. I need to know the adjustments for
1. Consolidated retained earnings
2. NCI in statement of financial position(if any)Thanks and regards,
Noman TufailMake the 300 adjustment in 75% subsidiary’s retained earnings and then calculate as normal
Thx 4 reply sir
It means that we would decrease NCI by 25% of 300 and decrease consolidated retained earnings by 75% of 300. And decrease inventory by 300
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