Help please - FNST Sample Assess 1

lhwood Registered Posts: 5 Regular contributor ⭐

I have just been looking through the sample assessments and am a little confused on part of it.
In question 1.4 B the consolidated statement of comprehensive income there is a working for cost of sales - in this there is an inter company adjustment which im not sure how it is calculated and looking at the answer its still not making sense to me.

Thanks for any help.



  • Steve Collings
    Steve Collings Registered Posts: 997 Epic contributor 🐘
    Have the company perhaps sold goods to a group member at a profit and that group member had some of the goods left in inventory at the year-end. If so it may be a PURP adj (provision for unrealised profit adjustment).

    I can't see the Q but that may be one aspect of the Q. If you can tell me what sort of adjustment it is I can probably shed more light on it.


  • stephleedz
    stephleedz Registered Posts: 179 Beyond epic contributor 🧙‍♂️
    Hi Ihwood,

    Do you mean Q1.4 B on CBT 2 where it asks 'The cost to be included in Property, Plant and Equipment will be:'? If this is the case (as the Q1.4 B in CBT 1 does not ask about COS) you would include the following:

    Invoiced proce of equipment £26454
    Delivery Costs £1200
    Direct costs of testing that the equipment is operating in the mannger intended by management £3160
    Proceeds from the sale of samples produced when testing equipment (£1600)

    = £29214

    Costs include the directly attributable costs incurred in bringing the asset into working condition for its inteded use.

    I hope this answers your query?
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