Question 1 Double Tree Bhd (DTB) is a manufacturing company. DTB owns the following investments in...
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Question 1 Double Tree Bhd (DTB) is a manufacturing company. DTB owns the following investments in other companies: Nature of business Hotel Manufacturing Transportation Name of company Non-equity shares held Equity Shares A Sdn Bhd (ASB) B Sdn Bhd (BSB) C Sdn Bhd (CSB) 70% Nil 25% 48% 80% 25% It is the company's policy that majority voting rights will provide investor with the current ability to direct the relevant activities, which often will be through determining operating and financing policies. DTB also has appointed five of the seven directors of C Sdn Bhd. During the current year DTB intended to acquired 80% of Fuji Sdn Bhd (FSB)'s 40,000 ordinary share capital for a consideration of RM3.50 cash per share. The fair value of the non-controlling interest was RM50,000 and the fair value of the net assets acquired was RM145,000. To fund the acquisition, the directors are aware of different methods to raise capital. (c) Explain what is a consolidated financial statement in accordance to MFRS 10 Consolidated Financial Statement. Your answer should include the exception to preparation of consolidated financial statement. [4 marks) Question 1 Double Tree Bhd (DTB) is a manufacturing company. DTB owns the following investments in other companies: Nature of business Hotel Manufacturing Transportation Name of company Non-equity shares held Equity Shares A Sdn Bhd (ASB) B Sdn Bhd (BSB) C Sdn Bhd (CSB) 70% Nil 25% 48% 80% 25% It is the company's policy that majority voting rights will provide investor with the current ability to direct the relevant activities, which often will be through determining operating and financing policies. DTB also has appointed five of the seven directors of C Sdn Bhd. During the current year DTB intended to acquired 80% of Fuji Sdn Bhd (FSB)'s 40,000 ordinary share capital for a consideration of RM3.50 cash per share. The fair value of the non-controlling interest was RM50,000 and the fair value of the net assets acquired was RM145,000. To fund the acquisition, the directors are aware of different methods to raise capital. (c) Explain what is a consolidated financial statement in accordance to MFRS 10 Consolidated Financial Statement. Your answer should include the exception to preparation of consolidated financial statement. [4 marks)
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Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
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