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SBR Notes Example 4 Chapter 4

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › SBR Notes Example 4 Chapter 4

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • April 7, 2021 at 1:21 pm #616234
    losercase
    Member
    • Topics: 20
    • Replies: 37
    • ☆☆

    Good morning and Hope you are doing wrll

    What about the treatment of loss of $5Mln (from following statement)?

    {Vader sold goods to Maul for $20 million at fair value following the acquisition. Vader made a loss on the
    transaction of $5 million and none of the goods sold had been sold outside of the group by year-end.}

    What do mean by the term Arms length? And why do not realise the loss ?

    Thank you

    April 8, 2021 at 10:01 am #616341
    Stephen Widberg
    Keymaster
    • Topics: 11
    • Replies: 2837
    • ☆☆☆☆☆

    Arms length – normal selling price as between unconnected third parties.

    Please refer to

    https://opentuition.com/topic/video-lecture-4-basic-group-structures-sploci-example/?view=all

    for your other question.

    April 9, 2021 at 1:02 pm #616567
    losercase
    Member
    • Topics: 20
    • Replies: 37
    • ☆☆

    Thanks. Got it. You are awesome

    April 10, 2021 at 1:35 pm #616659
    Stephen Widberg
    Keymaster
    • Topics: 11
    • Replies: 2837
    • ☆☆☆☆☆

    No worries

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