FAC3762 - Joint Ventures

1 INTER COMPANY TRANSACTIONS
2 REVERSE ADJUSTMENTS TO FAIR VALUE OF INVESTMENT
3 AT ACQUISITION
4 ADJUSTMENT SINCE ACQUISITION TO BOY
5 ADJUSTMENT FOR CURRENT YEAR
6 INSOLVENT ASSOCIATES

, 1. INTER COMPANY TRANSACTIONS

Adjustment for unrealised profit in inventory (upstream - A makes the profit)

From acquisition to BOY:
Retained earnings (SCE) X
Inventories (SFP) X

Deferred tax (SFP) X
Retained earnings (SCE) X

For the current year:
Inventories (SFP) x
Profit from associate (PL) x

Profit from associate (PL) x
Deferred tax (SFP) x
Being the reversal of the entry for the previous year


Profit from associate (PL) x
Inventory (SFP) x

Deferred tax (SFP) x
Profit from associate (PL) x

Adjustment for unrealised profit in inventory (downstream - H makes the profit)

From acquisition to BOY:
Retained earnings (SCE) x
Investment in associate (SFP) x

Investment in associate (SFP) x
Retained earnings (SCE) x

For the current year:
Investment in associate (SFP) x
Cost of sales (PL) x

Income tax expense (PL) x
Investment in associate (SFP) x
Being the reversal of the entry for the previous year


Cost of sales (PL) x
Investment in associate (SFP) x