Marchant june 2014 q1

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March 19, 2018 at 10:45 pm #443057
zkaay
Participant
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Hi tutor,

Could u explain the treatement/ adjustments for this( note 4)

Marchant sold inventory to nathon for 12 million at fair value. Marchanet made loss on transaction of 3 million and nathon still holds 8 million in inventory at year end.
March 23, 2018 at 9:00 pm #443631
P2-D2
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Hi,

Yes, as the inventory was sold for its fair value then the loss is not adjusted for within the group accounts, and is left in as it reflects the true value of the transaction.

Thanks
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