Related Party Transactions & Re-classifying assets

Can Anyone Help! - What disclosures are required

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Company P and Company B are both 100% subsidiaries of Company A. Company P owns an Investment Property which it bought for £100,000 and carries in its Balance Sheet at revalued amount of £750,000. In 2014 Company P transfers the Investment Property to Company B at cost showing no profit or loss in its P& L account. Company P makes no disclosure of the transfer in the notes to the accounts and does not record this as a related party transaction. The revalued asset represents about a third of Company P's net asset value.

While it is accepted that Company P can transfer to Company B at cost legitimately is it correct not to disclose the transaction in the Related Party notes of either Company P or B?

Should Auditors have given clean audit certificates with disclosures?

Company P (the receiving company) is a property developer decides to immediately classify the Property as 'stock' as it plans to sell the property. In due course (less than 12 months) it sells the property for £750,000 and takes a profit of £600,000 to its P&L account as Gross Profit in the process making the company's trade look more profitable.

Is this the correct accounting treatment or should the profit have been shown as a profit on disposal of an asset on the basis of the substance rather than the legal form of the transaction?  

Given the materiality of the transaction should disclosure notes have been added as being necessary to understand the financial statements?

If you know this stuff please help if you can....Many thanks

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