When downstream transaction take place we deduct unrealised profit(specifically part of unrealised profit) from value of investment in associate (SOFP). Why we doing that?
Ask the Tutor ACCA FR
when investor sell goods to associate
11y ago#1Because it's an unrealised profit and if we are to value the nvestment in the associate as "cost of investment + share of post acquisition retained - impairment since acquisition" then clearly the pup will affect the post acquisition retained figure
Ok?
Thank you
11y ago#3You're welcome
Sign into reply to this topic.