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PUP of opening balance!

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › PUP of opening balance!

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  • June 28, 2016 at 5:18 am #324283
    Binh
    Member
    • Topics: 41
    • Replies: 78
    • ☆☆

    Dear Sir,

    I have just practiced a simple consolidation question in BPP book to revise basic knowledge of group accounting. This question states that both opening and closing inventory of subsidiary have goods purchased from parent.

    I am quite confused and don’t know the correct treatment of opening PUP to retained earning, NCI and attributable income figures on P&L. I searched again all past papers of F7 (until to June 2011) but I did not see this type of question (just closing PUP only).

    Could you please give some details about the treatment! Tks you in advance!

    June 29, 2016 at 1:15 pm #324384
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7180
    • ☆☆☆☆☆

    Hi,

    It’s very rare that we see an opening PUP but if we were to see it then you would need to adjust for the movement in the PUP during the year. If it has increased then we reduce the retained earnings and if it has decreased we reduce retained earnings.

    Thanks

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