Hi
In this question Parent sells a Plant to its Subsidiary for $5000 which had a carrying amount of $4000 so the unrealised profit is $1000. Then they have calculated depreciation on this $1000 URP. I don't understand why that is. Don't we always calculate depreciation on the carrying amount of the asset??
Thanks a lot
Ask the Tutor ACCA FR
June 2011 Consolidation
Oh dear Arooba
I honestly don't want to continue answering your questions when the problem area is fully covered in great detail in the free course notes and in the video lectures
This really is unfair of you
WATCH THE LECTURES!!!!!!!
Now, I was just on the point of relenting and then realised that to give you a complete answer in words that you will understand, it's going to take me the best part of 15 minutes.
I cannot spend my life writing out lectures for you
I'm really sorry, but I must ask you please to watch the lecture on the accounting for unrealised profits on intra-group transactions
Then, if you still have a problem, by all means come back to me
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