Explain two ways in which unrealised profits might arise from transactions between companies in a group and

Question:

Explain two ways in which unrealised profits might arise from transactions between companies in a group and why it is important to remove them.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting And Reporting

ISBN: 9781292255996

19th Edition

Authors: Barry Elliott, Jamie Elliott

See More Books

Question Posted: Nov 04, 2022 01:28 AM

See More Questions

Explain two ways in which a recession might raise the natural rate of unemployment.
Explain two ways in which a government budget deficit hurts a future worker.
Explain two ways in which a company that makes purchases on account from foreign companies can protect itself against the losses that would arise from a sudden increase in the foreign exchange rate.
Advertising plays a major role in the ______________ stage of the product life cycle, and_______________ plays a major role in the maturity stage.
A sequence of zero mean unit variance independent random variables, Xn, n = 0, 1, 2, , N 1 are input to a filter that produces an output sequence according to Yn = (Xn + Xn 1)/ 2, for . For n = 0,...
At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15, 2021: The bond in the middle is callable in February 2022. What is...
Explain the basics of a performance evaluation system. LO.1
Network Solutions just introduced a new, fully automated manufacturing plant that produces 2,000 wireless routers per day with materials costs of $50 per router and no other costs. The average number...
In 2017, Taxpayer T ("T") sold 100 shares of X corporation stock to T's son S ("S") for $50,000. T's adjusted basis in the 100 shares of X stock was $70,000. In 2022, S sold the same 100 shares of X...
Read the case study How Westland/Hallmark Put Profit above Safety and answer the following question: In your opinion, why did the managers and Employees of the meat packing plant behave in the way...
Discuss the acceptability of the LIFO and replacement cost methods of inventory valuation and why the IASB has not permitted all methods to be used.
Part 1 Because Natalie has been so successful with Cookie Creations and her friend Curtis Lesperance has been just as successful with his coffee shop, they conclude that they could benefit from each...
Failure to invest in projects is not a problem when you use ROI. If there is a good project, corporate headquarters will just tell the division manager to invest. What are the difficulties with this...
Your client who is currently using only Facebook and Instagram wants to try LinkedIn. What would you do first ? and why ?
Exro Technologies Corp. (Exro) is an upstart Canadian company that specializes in the manufacture of electric motors and batteries for electric bikes. Exro uses a job costing system and during...
How do neurobiological mechanisms, such as the stress response system and emotional regulation pathways, influence the dynamics of conflict escalation and resolution?
What is the consideration to invest in the company which has recorded revenue growth over the past 5 years but the Debt to Equity ratio also increase significantly to 5.72?
Builder Products, Incorporated, uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion....
What is the common name for dioxygen oxide?
Briefly describe the following types of group life insurance plans: a. Group term life insurance b. Group accidental death and dismemberment insurance (AD&D) c. Group universal life insurance d....
The French group Club Mditerrane is an active service provider in the leisure and hospitality field with, in particular, its rich network of all-inclusive resort villages. The statements of income...
Wipro Limited, together with its subsidiaries and equity accounted investees (collectively, Wipro) is a leading India-based provider of IT Services, including Business Process Outsourcing (BPO)...
Multiple Choice Questions 1. Generally, the operating cash flow is expected to be negative (a) True (b) False 2. How is the available cash flow calculated? (a) Cash flow from operating activities...
Marigold industries had the following inventory transactions occur during 2020: 2/1/20 Purchase 51 units @ $46 cost/unit 3/14/20 purchase 98 units @ $49 cost/unit 5/1/20 purchase 68 units @ $53...
In this investment portfolio simulation, you and the bean counters, will invest and manage a fictitional amount of $ 1 , 0 0 0 , 0 0 0 during next three weeks. The simulation includes two fictitional...
Roberson Corporation uses a periodic inventory system and the retail inventory method. Accounting records provided the following information for the 2018 fiscal year: Cost Retail Beginning inventory...

Explain two ways in which unrealised profits might arise from transactions between companies in a group and

Question:

Step by Step Answer:

There are two ways in which unrealised profits might arise from transactions between companies in a ...View the full answer

Financial Accounting And Reporting

Students also viewed these Business questions