Page 11 - PowerPoint Presentation
P. 11

CONSOLIDATIONS AFTER THE DATE OF ACQUISITION




            Inventories








            • Unrealised profit in closing inventory


                    • If a subsidiary sells inventory to its parent and


                       the parent still has some of this inventory on


                       hand at year-end


                           • The cost of this inventory is too high because it

                              includes profit which has not been realised with a third

                              party outside the group.

















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