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William & Co

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Kim Smith.

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June 13, 2020 at 4:09 am #573693
toushiga
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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.
June 15, 2020 at 7:16 am #573812
Kim Smith
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You 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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