ASSOCIATE IMPORTANT CONCEPT SPL Flashcards
1
Q
Sale parent => associate (PURP)
A
Debit: Cost of sales
Credit: Investment in associate
2
Q
Dividend received?
A
Credit: Share of profit in associate
3
Q
Sale associate => parent (PURP)
A
Debit: Group share in associate
Credit: inventory
4
Q
Parent invests in associate (entry in balance sheet)
A
Investment in associate (non-current asset)
5
Q
Where does share of profit of associate go?
A
Within PBIT
