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Ask the Tutor ACCA SBR

Provision for unrealised profit(PURP)

Aamiir6y ago
Hi sir. Grateful if you could explain the logic as to why the PURP is added to cost of sales of the Group instead of deducting it from the Group's sales revenue, which ultimately will have the same impact on the Group's gross profit figure. Thanks in advance!
stephenwidbergstephenwidbergTutor6y ago#1
Inventory Dr Inv in SFP Cr Inv in COS in P&L PUP Dr Inv in COS in P&L Cr Inv in SFP
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