Page 460 - SBR Integrated Workbook STUDENT S18-J19
P. 460
Chapter 25
Example 1 – continued
(W6) Associate
$m
Cost 3.0
Group share of Armstrong’s post-aqn reserves
25% × $1.6m 0.4
——
3.4
——
(W7) Intra-group trade
Remove $1 million from receivables (current assets) and payables
(current liabilities).
Remove the profit in group inventory of $1m × 60% × 1/3 = $0.2m
Dr Retained earnings (W5) $0.2m
Cr Current assets $0.2m
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