Thursday 24 November 2016

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Thursday 10 November 2016

Cima F1 Exam Question No 57

Question No 57:

When the associate sells to the parent?

Reduce share of associate's profits
  • Reduce W5 retained earnings
  • Reduce inventory
The profit must be eliminated from the inventory because the inventory is in the books of the parent. The parent's inventory is consolidated so we must remove the profit from the inventory.