Please help cause l don't know why is the PURP from an associate not added to COS of the group so as to reduce the profits.
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PURP
13y ago#1If you had followed the lecture videos / audios or even just read the course notes......you would not have had to ask this question!
We need to eliminate JUST THE GROUP'S SHARE of any unrealised profit arising from a transaction with an associate. There are 2 ways of going about this. The way I do it in the course notes and in lectures is the easier way of the two. The answer does not agree with printed solutions about 50% of the time but that really is not a problem!
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