During the current period, a subsidiary entity sold inventories to its parent entity at a profit of $6 000. The goods had originally cost the subsidiary $30 000. All the inventories were still on hand at the end of the year. The consolidation adjustment entry would include the following line item: Group of answer choicesCR Inventories $30 000CR Inventories $18 000CR Inventories $24 000CR Inventories $6 000

On 1 June 2022, parent entity Forest Ltd sold inventory to subsidiary entity Wood Ltd for $80,000. The mark-up on sale was 25%. By 30 June 2020, 50% of the inventory had been sold to external customers for $90,000. What consolidation adjusting entries, if any, would be required on 30 June 2022 for this intra-group transaction? Group of answer choicesDr Retained Earnings $8,000; Cr COGS $8,000No consolidation entries are required as all the profit has become realizedDr Sales $90,000; Cr COGS $81,000; Cr Inventory $9,000Dr Sales $80,000; Cr COGS $72,000; Cr Inventory $8,000

During the 20X7 financial year, X Ltd sells inventory to its parent P Ltd for $90,000 representing a mark-up of 50% on cost. At 30 June 20X7, 3/4 of the goods are still held by P Ltd. The unrealised profit to be eliminated on consolidation is: a. $10,000 b. $22,500 c. $60,000 d. $30,000

41. Which of the following would result in an unrealised profit within a group scenario? A A parent sells a building originally costing $800,000 to its subsidiary for $900,000. The subsidiary still holds this asset at the date of consolidation. B A parent sells a building originally costing $800,000 to its subsidiary for $900,000. The subsidiary has sold this asset before the date of consolidation. C A parent sells goods which originally cost $14,000 to its subsidiary for $18,000. The subsidiary has sold all of these goods at the date of consolidation. D A parent sells goods which originally cost $14,000 to an associate for $18,000. The associate has sold all of these goods at the date of consolidation. 42. Which of the following explains the value that relevant information contains? A Instructive value B Fair value C Confirmatory value D Approximate value 43. Which of the following is an example of following the principle of faithful representation? A Showing lease payments as a rental expense B Being prudent by recording the entire amount of a convertible loan as a liability C Creating a provision for staff relocation costs as part of a planned restructuring D Recording a sale and repurchase transaction with a bank as a loan rather than a sale 44. A forum for consultation with parties affected by the work of the International Accounting Standards Board is provided by: A The International Financial Reporting Interpretations Committee B The IFRS Advisory Council C The IFRS Foundation D The IFRS Consulting Committee 45. Which of the following criteria need to be satisfied in order for an element to be recognised within the financial statements? (i) It meets the definition of an element of the financial statements. (ii) Recognition provides relevant information. (iii) Recognition provides a reliable measure. (iv) The element has fair value. (v) Recognition provides faithful representation of the element. A (i), (ii) and (v) B (i), (iii) and (v) C (i), (ii) and (iv) D (i), (iii) and (iv) give me only the correct options no explanation

The parent has a 40% associate.The parent sells the goods to the associate for $150; the goods originally cost the parent $100. The goods are still in the associate's inventory at year end.Required:State how the unrealised profit will be dealt with in the consolidated accounts.

S Ltd acquired land from its parent company P Ltd for $1 000 000. The land had originally cost P Ltd $100 000 (assume a tax rate of 30%). Two years later S sold the land outside the group for $1 200 000, the consolidation journal entry required would be (ignoring tax effects):a.Dr. Opening Retained Earnings             $200 000                Cr. Gain on Sale                                        $200 000b.Dr. Opening Retained Earnings            $900 000                Cr.  Gain on Sale                                      $900,000c.Dr. Opening Retained Earnings            $1 100 000                Cr. Gain on Sale                                        $1 100 000d.no entry required