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unrealised profit from inventory - consolidated SOFP

Former userFormer user7y ago

[Content removed at user request]

John MoffatJohn MoffatTutor7y ago#1
The consolidated accounts only want to value the inventory at the cost to the group. Inventory that was bought by one company from the other company includes the profit that the other company was adding on to the cost. This is the PURP and therefore needs removing. Have you watched my free lectures on this?
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