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Provision for unrealised profit(PURP)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Provision for unrealised profit(PURP)

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 24, 2019 at 9:02 am #553582
    amiirs
    Member
    • Topics: 23
    • Replies: 2
    • ☆

    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: 16
    • Replies: 3402
    • ☆☆☆☆☆

    Inventory

    Dr Inv in SFP
    Cr Inv in COS in P&L

    PUP

    Dr Inv in COS in P&L
    Cr Inv in SFP

  • Author
    Posts
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