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Sir if URP is not recorded if parent is seller in income statement for NCI
….Would it then be recorded in balance sheet for either retained earnings and NCI when parent is seller?You are using very old terminology. The correct names for the financial statements (and the names that will be used in the exam) are the Statement of Profit and Loss, and the Statement of Financial Position. The fact that you are using the old names suggests that you are using old books. It is essential that you are using an up-to-date Revision Kit from one of the ACCA Approved Publishers.
If the parent originally sold the inventory to the subsidiary, then the PURP does not affect the NCI at all. In the consolidated SOFP it reduces the retained earnings of the parent and the value of the inventory.
But if the subsidiary sold the inventory to parent then it would affect both retained earnings and NCI right sir??
Sir the previous reply is supposed to be deleted and this is what I was meant to ask
Sir would the non-controlling interest also be recorded in the SOFP???
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