Consolidated Statements - adjustments SOFP Flashcards
1
Q
Items which require elimination
A
Intercompany sales and purchases
Intragroup loans and any interest on those loans
Intergroup dividends
Intragroup Receivables and payables
2
Q
Eliminating intragroup balance
A
Dr Intragroup payable
Cr Intragroup Receivable
3
Q
Cash in transit
A
push forward transaction:
Dr Bank
Cr Intragroup receivables
Eliminate balance:
Dr Intragroup payable
Cr Intragroup Receivable
4
Q
Goods in transit
A
Push forward transaction :
Dr Inventory
Cr Intragroup payable
Eliminate balance
Dr Intragroup payable
Cr Intragroup Receivable
5
Q
When do you need to a PUP Adjustment
A
when some inventory remains in stock
Dr Retained earnings
Cr Inventory
6
Q
Fair values
A
adjustment will affect
Goodwill
NCI
SFP (uplift assets)
Retained earnings (if there is depreciation)
