Dept A constructs a power plant for Dept B, both depts are within same company. Dept A treats as normal business transaction with margin whereas Dept B will treat it as asset. According to IAS16 PPE, dept B cannot capitalise margin. As such, the margin will be expensed off in Dept B's P&L as cost of sales.
Question: Can Dept A recognises as internal sales with margin?
Question: Can Dept A recognises as internal sales with margin?