A parent sells goods to a subsidiary during the year but some of these goods remain unsold at year end thus leading to PURP. I get why we adjust for the selling price of the goods in the revenue and cost of sales when preparing consolidated SOCI, but why add the PURP to cost of sales too?
Cost of Sales is formed as Opening stock + Purchases - Closing Stock.
The PURP is contained in Closing stock. so to remove it from Closing stock (a negative value above) means to add it in COS.
See, if my answer is enough or it needs improvement.