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Foreign subsidiary

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Foreign subsidiary

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by MikeLittle.
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  • October 31, 2013 at 10:14 am #144196
    hasanali95
    Member
    • Topics: 239
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    How do we treat a PURP with a foreign subsidiary?

    October 31, 2013 at 1:42 pm #144212
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    The same as you would with a “home” subsidiary.

    Deduct the translated amount from the foreign subsidiary’s retained earnings if the foreign subsidiary is the one making the sale and recording the profit

    Deduct from the parent’s retained earnings if it’s the parent that has made the sale

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