Question
Company A ltd held 80% of the ordinary voting shares of company B Ltd. The following is an extract from their statement of financial position
Company A ltd held 80% of the ordinary voting shares of company B Ltd. The following is an extract from their statement of financial position as at 31 December 20x4:
| AA ltd | BB ltd | |
| $ | $ | |
| Current assets | ||
| Inventory | 625,000 | 300,000 |
You ascertain that included in the inventory of BB ltd were items purchased from AA Ltd for $100,000.
AALtd prices its products at cost plus 25%.
What is the correct figure to appear in the consolidated statement of financial position as inventory?
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Analysing The Value Proposition Of The Audit Process In Africa The Case Of Malawi
Authors: Daniel Dunga
1st Edition
3659166286, 978-3659166280
