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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Unrealised Profit Associate
Hi Mike
If an associate sells to the parents because the associate has earnt the profit we must deduct this unrealised profit from there retained earnings and we then calculate our share of the profits and then credit group inventory.
If a parent sells to an associate we deduct full unrealised profit from group retained earnings because its the parent who made the profit theres no share to calculate. Also because associate has inventory cr investment in associate
Is this correct ?
Hi,
Yes, this sounds correct.
Thanks