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.

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

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

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

Assume that an entity acquired 250 items of inventory at a cost of £20 each and sold 150 of the items for £25 each when the replacement cost was £22. Assume that the replacement cost of the remaining 50 units at year end was £24. Under Edwards and Bell the operating profit is: Assume that an entity acquired 250 items of inventory at a cost of £20 each and sold 150 of the items for £25 each when the replacement cost was £22. Assume that the replacement cost of the remaining 50 units at year end was £24. Under Edwards and Bell the operating profit is: 450 750 200 300

SCENARIO 9.1: Amy borrowed $20,000 from her parents to open a bagel shop. She pays her parents a 5% yearly return on the money they lent her. Her other yearly fixed costs equal $9,000. Her variable costs equal $30,000. In her first year, Amy sold 40,000 dozen at a price of $1.50 per dozen. Refer to Scenario 9.1. Amys total costs equalGroup of answer choices$39,000.$40,000.$50,000.$59,000.