Pears acquired a 40 percent interest in Apples on 1 January x6 when the fair value...

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Pears acquired a 40 percent interest in Apples on 1 January x6 when the fair value of the net assets of Apples was RM23 million. The cost of the investment was RM11 million. The fair value of the net assets of Apples on 31 December x6 was RM25 million. During the year, Pears received dividends from Apples and the carrying amount of the investment in associate using the equity method on 31 December x6 was RM11.55 million. Required: LCalculate the amount of dividends received from Apples. Where will it be disclosed? Assuming the investment was impaired by RM150,000, calculate the amount of dividends received from Apples i. Assuming the fair values of the net assets of Apples on 1 January x6 and 31 December 6 were RM30 million and RM35 million, respectively, and the carrying amount of the investment in associate was RM13.5 million, calculate the amount of dividends received from Apples. 2 On 1 January x4, Darrell acquired a 75 percent interest in Achiko when the net assets of Achiko was RM40 million. The increase in the post-acquisition net assets of Achiko was RM8 million before the dividend payment. The carrying amount in the non-controlling interest was RM11,82 million. Required: Find out how much dividends were paid to the non-controlling interest by Achiko? 3 Joy Group's statements of financial position have the following information: 31 December x7 RM'000 600 356 580 360 3,120 Investment in associate Inventory Trade receivables Trade payables Non-controlling interest During the year, Joy acquired 75 percent of the issued share capital of Love on 1 October x7 and paid RM9.5 million in cash. The net assets of Love on 1 October x7 were: Property, plant and equipment Inventory Trade receivables Bank 31 December x6 RM'000 560 200 224 180 870 Trade payables Tax payable Bank overdraft RM'000 7,500 140 60 540 80 40 120 There was no other acquisition or disposal of interests in the subsidiaries. Required: 1. Calculate the amount of cash flow involved in the acquisition of Love. Where in the group statement of cash flows will it be disclosed? ii. Calculate the amount of change in working capital for the group that affects the statement of cash flows. iii. Calculate the dividend that was received from the associates if the share of profits recognised for the year was RM60,000. iv. Assume that the dividends paid to the non-controlling interest was RM80,000. Calculate the share of profits attributable to the non-controlling interest as disclosed in the consolidated statement of profit or loss. 4 Peace Group's statements of financial position have the following information: Inventory Trade receivables Trade payables Non-controlling interest 31 December x5 RM'000 450 580 360 1,900 Property, plant and equipment Inventory Trade receivables Bank Trade payables Tax payable Bank overdraft 31 December x4 RM'000 600 460 580 2,100 During the year, Peace disposed of all of its 90 percent interest in its subsidiary, Humble, on 1 October x5 and received RM7.5 million in cash. The net assets of Humble on 1 October x5 were: RM'000 4,500 140 60 540 80 40 120 There was no other acquisition or disposal of interests in the subsidiaries. Required: i. Calculate the amount of cash flow involved in the disposal of Humble. 1. Calculate the amount of change in working capital for the group that affects the statement of cash flows. Assume that the dividends paid to the non-controlling interest was RM200,000. Calculate the share of profits attributable to the non-controlling interest as disclosed in the consolidated statement of profit or loss. Pears acquired a 40 percent interest in Apples on 1 January x6 when the fair value of the net assets of Apples was RM23 million. The cost of the investment was RM11 million. The fair value of the net assets of Apples on 31 December x6 was RM25 million. During the year, Pears received dividends from Apples and the carrying amount of the investment in associate using the equity method on 31 December x6 was RM11.55 million. Required: LCalculate the amount of dividends received from Apples. Where will it be disclosed? Assuming the investment was impaired by RM150,000, calculate the amount of dividends received from Apples i. Assuming the fair values of the net assets of Apples on 1 January x6 and 31 December 6 were RM30 million and RM35 million, respectively, and the carrying amount of the investment in associate was RM13.5 million, calculate the amount of dividends received from Apples. 2 On 1 January x4, Darrell acquired a 75 percent interest in Achiko when the net assets of Achiko was RM40 million. The increase in the post-acquisition net assets of Achiko was RM8 million before the dividend payment. The carrying amount in the non-controlling interest was RM11,82 million. Required: Find out how much dividends were paid to the non-controlling interest by Achiko? 3 Joy Group's statements of financial position have the following information: 31 December x7 RM'000 600 356 580 360 3,120 Investment in associate Inventory Trade receivables Trade payables Non-controlling interest During the year, Joy acquired 75 percent of the issued share capital of Love on 1 October x7 and paid RM9.5 million in cash. The net assets of Love on 1 October x7 were: Property, plant and equipment Inventory Trade receivables Bank 31 December x6 RM'000 560 200 224 180 870 Trade payables Tax payable Bank overdraft RM'000 7,500 140 60 540 80 40 120 There was no other acquisition or disposal of interests in the subsidiaries. Required: 1. Calculate the amount of cash flow involved in the acquisition of Love. Where in the group statement of cash flows will it be disclosed? ii. Calculate the amount of change in working capital for the group that affects the statement of cash flows. iii. Calculate the dividend that was received from the associates if the share of profits recognised for the year was RM60,000. iv. Assume that the dividends paid to the non-controlling interest was RM80,000. Calculate the share of profits attributable to the non-controlling interest as disclosed in the consolidated statement of profit or loss. 4 Peace Group's statements of financial position have the following information: Inventory Trade receivables Trade payables Non-controlling interest 31 December x5 RM'000 450 580 360 1,900 Property, plant and equipment Inventory Trade receivables Bank Trade payables Tax payable Bank overdraft 31 December x4 RM'000 600 460 580 2,100 During the year, Peace disposed of all of its 90 percent interest in its subsidiary, Humble, on 1 October x5 and received RM7.5 million in cash. The net assets of Humble on 1 October x5 were: RM'000 4,500 140 60 540 80 40 120 There was no other acquisition or disposal of interests in the subsidiaries. Required: i. Calculate the amount of cash flow involved in the disposal of Humble. 1. Calculate the amount of change in working capital for the group that affects the statement of cash flows. Assume that the dividends paid to the non-controlling interest was RM200,000. Calculate the share of profits attributable to the non-controlling interest as disclosed in the consolidated statement of profit or loss.

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