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Ask the Tutor ACCA FR

Receivables from associate.

Ssleepybird5y ago
If a company sells goods to its associates and the associate hasn’t paid at year end, should the company add the receivables from associates when preparing the financial statements?
P2-D2P2-D2Tutor5y ago#1
No, we do not consolidate any balances of the associate when equity accounting and nor do we eliminate any outstanding balances either. The only adjustment made would be for the share of the PURP. Thanks
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