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Pups on t/f of plant – Cons. Income statement

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Pups on t/f of plant – Cons. Income statement

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • July 22, 2016 at 5:25 pm #328399
    aamir2111
    Participant
    • Topics: 123
    • Replies: 85
    • ☆☆☆

    Suppose P transfers/sells a plant to S, in income statement are we to reduce the revenue and the cost of sale by the transfer price/selling rice amount or just add the profit on sale to the cost of sales?

    July 22, 2016 at 6:00 pm #328406
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23335
    • ☆☆☆☆☆

    Sale proceeds of plant do not go into revenue nor does the cost go into cost of sales

    The only exception is where the company is a manufacturer / retailer of plant items

    Does that answer your question?

    July 22, 2016 at 6:44 pm #328420
    aamir2111
    Participant
    • Topics: 123
    • Replies: 85
    • ☆☆☆

    Thanks 🙂

    July 22, 2016 at 7:48 pm #328431
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23335
    • ☆☆☆☆☆

    You’re welcome

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