CSPL Adjustments Flashcards
1
Q
Sales from parent to subsidiary in post-acq period had consistently been $600000 per month (intragroup sales)
A
Debit: Revenue
Credit: COS
2
Q
Intragroup transactions for interest?
A
Debit interest income
Credit finance cost
3
Q
Parent made markup on cost 25% on these sales. Subsidiary had $1.2m of these goods in inventory as at 30 September 20X2 (unrealised profits)
A
Debit cost of sales
SFP for unrealised profits is
Debit RE
Credit inventory
