Green Berhad is a Malaysian listed company that involves in the water dispenser business. On 1...

  

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Green Berhad is a Malaysian listed company that involves in the water dispenser business. On 1 January 2015, Green Berhad had acquired 40% of the issued share capital of Yellow Sdn. Bhd. for RM300,000 when the retained profit was RM75,000. Green Berhad purchased another 40% of Yellow Sdn. Bhd's ordinary shares for RM500,000 on 1 April 2020. On 1 April 2020, the fair value of the initial 40% interest in Yellow Sdn. Bhd. was RM435,000. Greed Berhad acquired 60% of the issued ordinary shares of Blue Sdn. Bhd. on 1 January 2018, when Blue Sdn. Bhd. retained profit was RM75,000. RM1,250,000 in cash was paid to Blue Sdn. Bhd. The identifiable net assets of Blue Sdn. Bhd were valued at RM2,000,000. On 31 December 2019, goodwill of RM10,000 was impaired. Green Berhad acquired an additional 20% of the issued ordinary shares of Blue Sdn. Bhd. on 1 April 2020 for RM1,300,000. On 1 April 2020, the fair value of Blue Sdn. Bhd's identifiable assets was RM6,000,000. Green Berhad's revenue include sale to Blue Sdn. Bhd. amounting to RM500,000. These goods were invoiced at cost plus 25%. Blue Sdn. Bhd. still has 20% of these goods. The statement of profit or loss for the three companies for the year ended 31 December 2020 are as follows: Revenue Cost of sales Expenses Tax expense Profit after tax Ordinary dividends paid in year 2020 Retained profits at 1 January 2020 Green Berhad RM'000 4,000 (2,000) (600) (400) 1,000 50 250 Orange Sdn. Bhd. RM'000 2,000 (1,000) (500) (150) 350 100 Blue Sdn. Bhd. RM'000 1,500 (500) (400) (100) 500 300 Required: i. Prepare the consolidated statement of profit or loss for the year ended 31 December 2020. (21 marks) ii. Compute the group retained profit as at 31 December 2020. (4 marks) (Total: 25 marks) Green Berhad is a Malaysian listed company that involves in the water dispenser business. On 1 January 2015, Green Berhad had acquired 40% of the issued share capital of Yellow Sdn. Bhd. for RM300,000 when the retained profit was RM75,000. Green Berhad purchased another 40% of Yellow Sdn. Bhd's ordinary shares for RM500,000 on 1 April 2020. On 1 April 2020, the fair value of the initial 40% interest in Yellow Sdn. Bhd. was RM435,000. Greed Berhad acquired 60% of the issued ordinary shares of Blue Sdn. Bhd. on 1 January 2018, when Blue Sdn. Bhd. retained profit was RM75,000. RM1,250,000 in cash was paid to Blue Sdn. Bhd. The identifiable net assets of Blue Sdn. Bhd were valued at RM2,000,000. On 31 December 2019, goodwill of RM10,000 was impaired. Green Berhad acquired an additional 20% of the issued ordinary shares of Blue Sdn. Bhd. on 1 April 2020 for RM1,300,000. On 1 April 2020, the fair value of Blue Sdn. Bhd's identifiable assets was RM6,000,000. Green Berhad's revenue include sale to Blue Sdn. Bhd. amounting to RM500,000. These goods were invoiced at cost plus 25%. Blue Sdn. Bhd. still has 20% of these goods. The statement of profit or loss for the three companies for the year ended 31 December 2020 are as follows: Revenue Cost of sales Expenses Tax expense Profit after tax Ordinary dividends paid in year 2020 Retained profits at 1 January 2020 Green Berhad RM'000 4,000 (2,000) (600) (400) 1,000 50 250 Orange Sdn. Bhd. RM'000 2,000 (1,000) (500) (150) 350 100 Blue Sdn. Bhd. RM'000 1,500 (500) (400) (100) 500 300 Required: i. Prepare the consolidated statement of profit or loss for the year ended 31 December 2020. (21 marks) ii. Compute the group retained profit as at 31 December 2020. (4 marks) (Total: 25 marks)

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i Prepare the consolidated statement of profit or loss for the year ended 31 December 2020 RM... View the full answer