- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
Sir..
Could you please explain me the logic of debiting the Group retained earnings by the amount of the unrealised profits when the Associate has sold goods to its parent?
Thanks in advance.You’re consolidating as a group and in turn the group has not realised that profit as you’re considering it as one entity. In turn the unrealised profit is stripped out as it could distort the accounts (sell to self at an inflate price/ price you desire to manipulate the figures). I hope this helps
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.