Omnikit(FS,6/97)

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November 20, 2017 at 1:33 pm #416903
jawadurrahman
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Sir why they have included royalty payment again in the proforma while the swiss subsidiary has already paid them and it has been converted and included in the cashflows so why they are adding it again in the UK section of the Proforma…Its in the Bpp exam kit
November 20, 2017 at 7:05 pm #416989
John Moffat
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It is also a past exam question!!

The royalties are being paid to the UK company – so they are expenses for the Swiss company but then income for the UK company.
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