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AS 27 Joint venture
Accountancy
so in the last question i.e the sep 2024 question 5 in the suggested answer shown in this video they reduced the unrealized profit in analysis of profit, but the suggested answer which is available now in the ICAI official website they did not consider the unrealized profit.what is the actual way to approach? Video Details ------------- P1 - Adv Accounting Fast Track Revision P1 Advanced Accounting Fast Track #29. AS- 27 | Joint Venture
Answers (1)
Ideally it should not be adjusted at the time of computation of net assets since it's a pre acquisition transaction. However, at the time of consolidation, the inventory should be stated at cost to the group. IN the latest CA final May 26 exams, ICAI has considered inventory value as at balance sheet date for computation of Goodwill. Subsequently unrealised profits have been eliminated. We can follow the same.
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