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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Foreign subsidiary
How do we treat a PURP with a foreign subsidiary?
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
