Where an Intragroup Sale of an Asset at a Profit

question 3

True/False

Where an intragroup sale of an asset at a profit has been made and the asset was classified as plant in the selling entity's books, but subsequently classified as inventories in the buying entity's books, a credit adjustment is required against cost of sales in the year of sale.

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Definitions:

Specific Date

Referring to a precise day identified by its day, month, and year.

Default

A preselected option adopted by a computer program or other mechanism when no alternative is specified by the user or programmer.

Appointment Status

The current state of a scheduled event, such as confirmed, pending, or canceled.

Appointment

A scheduled arrangement for a meeting or event at a specific time and place, often noted in calendars and scheduling software.