ASSOCIATE IMPORTANT CONCEPT SPL

Question 1

Sale parent => associate (PURP)

Answer 1

Debit: Cost of sales
Credit: Investment in associate

Question 2

Dividend received?

Answer 2

Credit: Share of profit in associate

Question 3

Sale associate => parent (PURP)

Answer 3

Debit: Group share in associate
Credit: inventory

Question 4

Parent invests in associate (entry in balance sheet)

Answer 4

Investment in associate (non-current asset)

Question 5

Where does share of profit of associate go?

Answer 5

Within PBIT