In an accounting period, a parent company has sales of £867,000 and its 80% subsidiary has sales of £121,000. The group sales figure for the period is £963,800. True or false?

False as in consolidation the entities revenue is not discounted by the interest of Parent company. 

Good question.

My answer is that as teh parent company although controls80% of the subsidiary,100% of the accounts should be reported upon consolidation. Therefore100% of sales should be reported for group sales . i.e988,000 (867000+121000). The effect of equity however shows the part for minority interest representing the20% ownership in the financial statement.

Hope this helps

X

FALSE

Fales

False, good explanation given by steve

False

Group Sale + Subsidry sale(Consifer Accusition date) - Intergroup sale

False, As parent company sales is of 

the averagr will be49400

the sales will be988000 so its false

True