PURP inventory

For a PURP of 100 on unsold inventory, you must reduce the consolidated inventory value by 100 and increase the consolidated Cost of Sales (COGS) by 100. While the fundamental adjustment to the asset (Inventory) and the expense (COGS) is the same, if the sale is "upstream," you must ensure that the reduction in profit is allocated proportionately between the Group and the Non-Controlling Interest.