• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

PURP adjustment in Consolidated SOFP.

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › PURP adjustment in Consolidated SOFP.

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by mrjonbain.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 21, 2018 at 2:17 am #468665
    utsavlt
    Participant
    • Topics: 31
    • Replies: 4
    • ☆

    While preparing the Consolidated SOFP including Subsidiary and associate, and the Provision to remove Unrealised Profit occurs on the both case, the full value of PURP is deducted in RE in case of Subsidiary (whatever % is owned by Parent) while in case of Associate,PURP is multiplied by the parent owning %in Associate and this amount is deducted in RE,not the full as like subsidiary.

    What is the reason for such difference in treatment of PURP ?

    August 21, 2018 at 9:41 pm #468785
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2427
    • ☆☆☆☆☆

    With subsidiaries you are preparing accounts for whole group as parent has power to control whole group even though it might not own all shares in any given subsidiary.Therefore, since it has this power to control group assets. and liabilities other than those cancelled out by intergroup trading and loans are simply added together and the non-controlling interests share of groups equity merely shown at end.With associates since associates can’t be controlled but are not simply investments as company has significant influence in them they are shown using equity method on statement of financial position.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Bainamura on The Statement of Financial Position – ACCA Financial Accounting (FA) lectures
  • kadamova.f@gmail.com on Associates (IAS 28) – PUPs – ACCA Financial Reporting (FR)
  • kadamova.f@gmail.com on Associates (IAS 28) – PUPs – ACCA Financial Reporting (FR)
  • bpop on Risk and uncertainty (part 2) – ACCA (AFM) lectures
  • kamo7293 on Financial performance – Example 2 – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in