Ms,for PYQ Dec 2014 Q2(c)
(c) "Intercompany trading"
1.rather than calculate the materiality level for the inventory amt of $50m, can we calculate the unrealised profit of $30m based on profit for the year?
Thank you.
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William & Co
6y ago#1You could but we don't know what the mark-up is - or anything - to know the amount of unrealised profit in $50m. (The $20m I balance on "current a/c" between the companies - it has nothing to do with the balance of inventory.)
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