- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
- Posts
For example , subsidiary sold some goods to its parent in year 2016 , in the end of the year there still have half of the goods remain unsold .
I know have to do some adjustment in the consolidated financial statement 2016 . However , i wonder what is the treatment for 2017 where all the goods are sold .
We no longer need that provision so we deduct it from the 2017 cost of sales
Of far greater interest is where there is a pup brought forward and a pup to be carried forward
Your question is one that I don’t remember ever being asked in F7 but it does sometimes happen that we have a brought forward and a carry forward pup
If we have brought forward a pup of, say, $3,000 and a carry forward of $4,000 we need to add $1,000 to this second year’s cost of sales
If it were the other way round with $5,000 brought forward and $4,000 to carry forward, we would deduct that $1,000 movement fro this second year’s cost of sales
OK?
- The topic ‘Treatment for the preceding Intra Group Transaction’ is closed to new replies.