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can someone explain to me intra-group balances treatment please

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November 24th 2015 AN ACCA USER 220 Points

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Based on the studies that I have done so far, my understanding of the treatment ....
If the parent sold to the sub or vice-versa, the entire sales is remove from the "Revenue" balance and the "Cost of Sales" balance in the Consolidated Income Statement.

After doing that, you have to account for the URP if any by adding it to cost of sales and then subtracting it from the inventory balance in the SOFP.

Hope I was helpful.

November 25th 2015 AN ACCA USER 610 Points
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thank you very much Donald

November 26th 2015 AN ACCA USER 220 Points