QUESTION 3: The following are the Statement of Financial Position of Alpha Bhd, Beta Bhd and...

     

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QUESTION 3: The following are the Statement of Financial Position of Alpha Bhd, Beta Bhd and Gama Bhd as at 30 June 2021. Non-Current Assets Property, Plant & Equipment Intangible assets Investment in: Beta Gama Others Total Non-Current Assets Current Assets Investories Trade Receivables Cash and cash equivalents Total Current Assets Total Assets Alpha RM'000 14,200 1,000 6,800 3,800 500 26,300 1,816 820 1,764 4,400 30,700 Beta RM'000 5,280 3,000 940 9,220 1,280 660 360 2,300 11,520 Gama RM'000 2,680 600 400 3,680 360 180 800 1,340 5,020 Equity 4% preference shares Ordinary shares Retained earning as at 1st July 2020 Profit for the year Revaluation reserve Total Equity Non-current Liabilities 5% Debentures Current Liabilites Trade Payables Tax Payable Total Current Liabilities Total Equity and Liabilities 60 22,300 5,200 1,920 600 30,080 208 330 82 412 30,700 4,000 2,800 2,200 1,100 500 10,600 20 880 20 900 11,520 1,700 1,340 700 3,740 620 648 12 660 5,020 Additional Information: a) The number of issued ordinary share capital of the three companies comprise the following: Ordinary Share Preference Shares Alpha 2,400,000 40,000 Beta 2,000,000 3,600,000 Alpha Bhd Beta Bhd Gama Bhd Gama 1,200,000 b) On 1 July 2018, Alpha Bhd acquired 1,200,000 ordinary shares in Beta Bhd. On the date of its acquisition, the fair values of Beta Bhd's net assets were equal to their book values with the exception of a plot of land that had a fair value of RM 700,000 in excess of its book value Beta Bhd did not incorporate this value in its accounts. On 1 July 2018, Alpha Bhd acquire 480,000 ordinary shares in Gama Bhd when the fair value of land is more than its carrying amount of RM 400,000. c) The balances of the retained earnings of the three companies are as follows: 1 JULY 2018 RM 2,400,000 RM 800,000 RM 500,000 d) During the year, Beta Bhd sold goods to Alpha Bhd at a selling pice of RM 500,000 which gave Beta Bhd a profit of 25% on cost. Alpha Bhd had half of these goods in inventor at June 30, 2021. e) During the year, Gama Bhd made inter-company sales to Alpha Bhd of RM 520,00 at cost plus 10% RM 11,000 of these goods were included in the inventory at the year end. f) Impairment tests at the end of the year indicated that, the goodwill in Gama Bhd was impaired by 10%. The impairment loss on the goodwill in Beta Bhd is RM 100,000. g) It is group policy to value non controlling interests at fair value. The fair value of the non-controlling interest in Beta Bhd as at July 1st 2018 was RM 3,800,000. Required: Prepare a Consolidated Statement of Financial Position of Alpha Bhd Group as at June 30, 2021. [Show all your working] QUESTION 3: The following are the Statement of Financial Position of Alpha Bhd, Beta Bhd and Gama Bhd as at 30 June 2021. Non-Current Assets Property, Plant & Equipment Intangible assets Investment in: Beta Gama Others Total Non-Current Assets Current Assets Investories Trade Receivables Cash and cash equivalents Total Current Assets Total Assets Alpha RM'000 14,200 1,000 6,800 3,800 500 26,300 1,816 820 1,764 4,400 30,700 Beta RM'000 5,280 3,000 940 9,220 1,280 660 360 2,300 11,520 Gama RM'000 2,680 600 400 3,680 360 180 800 1,340 5,020 Equity 4% preference shares Ordinary shares Retained earning as at 1st July 2020 Profit for the year Revaluation reserve Total Equity Non-current Liabilities 5% Debentures Current Liabilites Trade Payables Tax Payable Total Current Liabilities Total Equity and Liabilities 60 22,300 5,200 1,920 600 30,080 208 330 82 412 30,700 4,000 2,800 2,200 1,100 500 10,600 20 880 20 900 11,520 1,700 1,340 700 3,740 620 648 12 660 5,020 Additional Information: a) The number of issued ordinary share capital of the three companies comprise the following: Ordinary Share Preference Shares Alpha 2,400,000 40,000 Beta 2,000,000 3,600,000 Alpha Bhd Beta Bhd Gama Bhd Gama 1,200,000 b) On 1 July 2018, Alpha Bhd acquired 1,200,000 ordinary shares in Beta Bhd. On the date of its acquisition, the fair values of Beta Bhd's net assets were equal to their book values with the exception of a plot of land that had a fair value of RM 700,000 in excess of its book value Beta Bhd did not incorporate this value in its accounts. On 1 July 2018, Alpha Bhd acquire 480,000 ordinary shares in Gama Bhd when the fair value of land is more than its carrying amount of RM 400,000. c) The balances of the retained earnings of the three companies are as follows: 1 JULY 2018 RM 2,400,000 RM 800,000 RM 500,000 d) During the year, Beta Bhd sold goods to Alpha Bhd at a selling pice of RM 500,000 which gave Beta Bhd a profit of 25% on cost. Alpha Bhd had half of these goods in inventor at June 30, 2021. e) During the year, Gama Bhd made inter-company sales to Alpha Bhd of RM 520,00 at cost plus 10% RM 11,000 of these goods were included in the inventory at the year end. f) Impairment tests at the end of the year indicated that, the goodwill in Gama Bhd was impaired by 10%. The impairment loss on the goodwill in Beta Bhd is RM 100,000. g) It is group policy to value non controlling interests at fair value. The fair value of the non-controlling interest in Beta Bhd as at July 1st 2018 was RM 3,800,000. Required: Prepare a Consolidated Statement of Financial Position of Alpha Bhd Group as at June 30, 2021. [Show all your working]

Answer rating: 100% (QA)

Notes all quantity in RM000 1 Stake nonheritable in Beta one2000002000000 60 Stake nonheritable in G... View the full answer