Dipl. Experte In Rechnungslegung Und Controlling Practice Questions - Diplomierte R Expertin Experte In Rechnungslegung Und Controlling Mit Eidgenössischem Diplom Exam

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During the financial year, Parent AG sells merchandise for CHF 2,000,000 to its 100% Subsidiary B at a profit margin of 25% on sales price (unrealized intercompany profit = CHF 500,000). At year-end, Subsidiary B still holds 40% of these goods in its inventory. What intercompany profit elimination entry (Zwischengewinneliminierung) must be made in the consolidated accounts under Swiss GAAP FER 30?

Debit Cost of Goods Sold / Operating Profit (Erfolgsrechnung) CHF 200,000 / Credit Consolidated Inventories (Vorräte) CHF 200,000 Debit Consolidated Inventories CHF 500,000 / Credit Revenue CHF 500,000 Debit Accounts Receivable CHF 200,000 / Credit Accounts Payable CHF 200,000 No entry, because transactions between group companies are realized at the legal entity level

Correct Answer:

Debit Cost of Goods Sold / Operating Profit (Erfolgsrechnung) CHF 200,000 / Credit Consolidated Inventories (Vorräte) CHF 200,000

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