- This topic has 0 replies, 1 voice, and was last updated 4 years ago by .
Viewing 1 post (of 1 total)
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>
Forums › ACCA Forums › ACCA FR Financial Reporting Forums › PUP adjastment on revenue
Below is Kaplan problem and its answer, as you can see in answer author hasn’t made PUP adjustment, can you tell me what is the reason? why we don’t have to make PUP Adjustment
Problem:
AB has owned 80% of CD for many years. In the current year ended 30 June 20X3, AB has
reported total revenues of $5.5 million, and CD of $2.1 million. AB has sold goods to CD during
the year with a total value of $1 million, earning a margin of 20%. Half of these goods remain
in year?end inventories.
What is the consolidated revenue figure for the AB group for the year ended 30 June 20X3?
Answer:
$6,600,000 Consolidated revenue: AB $5.5m + CD $2.1m – $1m intra?group= $6.6 million All intra?group sales and cost of sales are removed from the group accounts