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