- This topic has 1 reply, 2 voices, and was last updated 4 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › unrealised profit from inventory – consolidated SOFP
Why would you have to remove the unrealised profit from the inventory?
I get that it is the amount that is left from an intra-sale that was not sold externally.
so if its left, shouldn’t it be just added to inventory?
i can memories that for all intra-trade you just deduct it but im not sure why you would do that for this particular case.
please help
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?