I am doing P2 interim assessment questions and I am stuck on this particular question. I don't even know where to start finding the answer, I would appreciate if any of you just lead me to the right direction. Thank you.
Question: X is a comany that prepares its financial statements under IFRS. There are some outstanding account issues that relate to the year ended 31 Dec 20X1
During the year, X sold goods to Y for $500,000 at a mark up of 30%. X normally makes a mark up of 70% on its sales. By the year-end, this sales invoice remained outstanding. Mrs Jones owns 100% of the equity share in X and is a director of Y.
Required: Discuss How the above should be accounted for in the financial statements of X for the Year ended 31 Dec 20X1
Thank you in advance!
Hello, I'm stuck with this too! If anyone can help today before 2pm that would be great!!