Provision for unrealised profit(PURP)

This topic has 1 reply, 2 voices, and was last updated 6 years ago by Stephen Widberg.

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November 24, 2019 at 9:02 am #553582
amiirs
Participant
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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!
November 24, 2019 at 9:10 am #553583
Stephen Widberg
Keymaster
- Topics: 17
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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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