Question
Q1 . Assume Parent Co. owns 100% of Sub Co. The following intercompany transactions occurred during the year: Parent loaned SAR 500 to Sub. Parent
Q1 . Assume Parent Co. owns 100% of Sub Co. The following intercompany transactions occurred during the year: Parent loaned SAR 500 to Sub.
- Parent made a sale to Sub for SAR 400 cash. The inventory had originally cost Parent SAR 250. Sub then sold that same inventory to an outsider for SAR 500.
Required: What consolidation worksheet entries would you make?
Q2. Distinguish between an upstream sale of inventory and a downstream sale. Why is it important to know whether a sale is upstream or downstream?
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Accounting In Emerging Economies
Authors: Mathew Tsamenyi
1st Edition
1849506256, 9781849506250
