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FR: Group SFP – Example (PUPs)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › FR: Group SFP – Example (PUPs)

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
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  • April 20, 2021 at 12:35 am #618253
    hasna5801
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    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: 6451
    • ☆☆☆☆☆

    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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