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Hi mike
If P sells goods to S and after modifications S sell the same goods to S with another SP. What will happen to rev and cost of sales in the sopl? I came across some time ago. But I cannot find it nowEliminate revenues and costs of sales for all the intra-group transactions.
Calculate how much unrealised profit is in the inventory of both the parent and the subsidiary and make provisions in both companies
Does that answer it for you?
If not, post again
And now, can you please answer a question from me to you …. how can S sell goods to S?
Sorry S to P
Is it
Total revenue – intra group rev (S+p
Cost – intra group rev (S and P) + Pup (S and P)Sofp
Inventory – pups (p and S)
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