Parent has interest in a Subsidiary (75%) and Associate (25%).
Subsidiary uses 40% markup to the cost of inventory. Subsidiary sold inventory to Associate -$200 (sale price). Associate still had 10% of inventory at the end of reporting period.
is it intragroup transaction and how you treat it?
ACCA Forums
FAEquity method and transactions between subsidiary and associate
It isn't an intragroup transaction. It'll be treated in the same way as any other sales invoice.
For Subsidiary:
Dr Cash/Receivable
Cr Sales
For Associate:
Dr Purchases
Cr Cash/Payables
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