ADJUSTMENTS EXAMS HELP PLEASE GOT NO HELP :(

mesh87

Hi,

I am soon going to sit my exam and need help with the adjustments for a subsidiary selling to a parent with some stock still left in the inventory at the year end.
im getting confused as to what adjustments to make to cost of sales and revenue, in the consolidated statement of comprehensive income.. PLEASE PLEASE SOMEONE HELP...i am desperate and cannot get ahold of my tutor ((((

Marco

this is how u do it:
1) take away the sale price from Revenue and cost of the sale
2) Add unrealised profit to the cost of the sale( sale-cost=profite, unrealised is whatever is left in the company)
3) work out the NCI: % of profit for the year od sub X
% of Unrealised profit Take away (X)

hope u get it