alleryStart learning →Group goods stay unsold at year end. What must the group do?
AWrite the goods off completely
BRevalue them at selling price
CEliminate the unrealised profit
DIgnore it as immaterial
Answer & Solution
Correct answer: C. Eliminate the unrealised profit
Profit on goods still in group inventory is not yet earned from outsiders, so it is eliminated.
Keep practising Consolidated Financial Statement
Browse all Consolidated Financial Statement questions for CA Final, or explore more Auditing topics.
Related questions
Which expenditure is generally immaterial?What is the objective of an audit of financial statements?For the UK small-group exemption, how many of the three tests must be met?Under UK Companies Act 2006 s.399, who must prepare group accounts?What does a holding company usually not do itself?What is the primary business of a holding company?Can a parent company be smaller than its subsidiary?What is a second-tier subsidiary?