Page 257 - F2 Integrated Workbook STUDENT 2019
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Basic group accounts (F1 revision)
3.4 PUP adjustments and the CSOFP
A PUP is a provision for unrealised profits.
It will be required when:
an intragroup sale occurs at a profit
the goods are still held in the group.
ALWAYS adjust the SELLERS retained earnings in the CSOFP
If P sells to S:
Dr Retained earnings of P (W5)
Cr Inventory (CSOFP)
If S sells to P:
Dr Retained earnings of S (W2)
Cr Inventory (CSOFP)
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