FR: Group SFP – Example (PUPs)

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April 20, 2021 at 12:35 am #618253
hasna5801
Participant
- Topics: 1
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At the time of sale , inventory of 120,000, would have been created on both parent and subsidiary SFP’s. Why did we not remove this intra group trading amount of 120’000 from the current assets and current liabilities?
Dr Payables (CL) 120,000
Cr Receivables (CA) 120,000
Thank you
April 21, 2021 at 9:12 pm #618450
P2-D2
Keymaster
- Topics: 4
- Replies: 7232
Hi,
We are not told anything about the outstanding balances, so assume that they have been paid and are not outstanding. If they have been paid then we do not need to eliminate them as they are not in the accounts.
Thanks
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