Transfer of non current assets

Sorry there were some typo in the earlier post. When subsidiary sells to parent, - URP from Fair value of net assets - URP from inventory + URP to cost of sales. Am i right ?

"Parent sells to Subsudiary Adjustments: – URP from PPE – URP from group retained earnings + URP to cost of sales" NO! This post, you say, is about transfer of non-current assets So what's that entry doing in Cost of Sales? The double entry is complete after reducing PPE and Retained earnings in parent "When subsidiary sells to parent, – URP from Fair value of net assets – URP from inventory + URP to cost of sales." Utter confusion! "– URP from Fair value of net assets" should be "– URP from PPE" "– URP from inventory" - a transfer of non-current assets is nothing to do with "inventory" "+ URP to cost of sales." - nor has it anything to do with Cost of Sales The double entry is complete after reducing PPE and Retained earnings in subsidiary No more! The exam has probably already started!

Okay. You mean a transfer of non-current asset isn't the same as a sale of non current asset ,

No, they are one and the same except, I suppose, that transfer COULD involve a non-profit transfer But that DOES NOT happen in F7 exams - it's always either sold at a profit or transferred at a profit

Okay thanks alot.

You're welcome