P2 consolidated SFP

This topic has 1 reply, 2 voices, and was last updated 11 years ago by soooraj.

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November 15, 2014 at 11:15 pm #210297
syahira
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I need guidance on Question Beth ( Dec 2007).

Note 3 : Beth (parent) sold inventory cost $18m to Gain(associate) for $28m. The inventory was still held by Gain at year end.

May I know the accounting treatment for this. To my knowledge, it should be

DR retained earnings
CR investment in associate

But the answer scheme in revision kit doesnt include in retained earnings.
November 16, 2014 at 3:37 pm #210454
soooraj
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Syahira you are right but this is correct treatment Dr cre and cr IIA with 10*30%=3
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