The following information is relevant:- (i) The opening and closing inventory for both companies is :-...

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The following information is relevant:- (i) The opening and closing inventory for both companies is :- Kobe RM'000 Josh W'000 Opening inventory 500 100 Closing inventory 500 100 (ii) The exchange rate to be used is as following:- RM W 1 January 2020 1 3 Average rate for the year 1 2.5 31 December 2020 1 2 Date of opening inventory was purchased Date of closing inventory was purchased 1 2.25 1 3 1 January 2014 date on which property, plant and equipment were acquired 1 3 Required: By assuming the subsidiary's functional currency is Ringgit Malaysia (RM), (a) (b) Prepare the consolidated statement of comprehensive income for Kobe Group for the year ended 31 December 2020. [10 marks] Prepare the consolidated statement of financial position for Kobe Group as at 31 December 2020. [15 marks] Current assets Inventory Receivables Bank Total Assets 500 100 900 500 300 200 5.900 3.800 Equity and liabilities Equity Equity shares capital (2.5 million shares for 2,500 2,000 Kobe and 2.0 million shares for Josh) Retained earnings brought forward 1,700 1,000 Profits for the year 1,500 400 5,700 3,400 Current liabilities Total equity and liabilities 200 400 5.900 3.800 Question 4 On January 1, 2020, Kobe Bbd acquired 75% of the issued ordinary share capital of Josh Ltd which is situated in Wonderland where the currency is W. The reserves of Josh on that date were W1 million. The financial statements of Kobe and Josh for the year ended 31 December 2020 are as follows: Statements of comprehensive income for the year ended 31 December Revenue Cost of sales Gross Profit Depreciation costs Administrative expenses Net Profit for the year 2020 Kobe Josh RM'000 W'000 5,500 2,000 (3,000) (800) 2,500 1,200 (400) (300) (600) (500) 1,500 400 Statements of financial position as at 31 December 2020 Non-Current Assets Property, plant and equipment Investment in Josh Kobe Josh RM'000 W'000 3,000 3,000 1,200 Nil 4,200 3,000 Summarised Statements of Comprehensive Income as at 31 December 2019 Profit before tax Income tax expense Jayamas Kayamas Berhad & Berhad Subsidiaries RM'000 RM'000 1,950 680 (350) (130) 1.600 550 Net profit for the year Notes (i) Assume that the associate's assets/liabilities are stated at fair value. (ii) Assume that there are no non-controlling interests in the subsidiary companies. Required: Prepare the summarised consolidated statement of financial position as at 31 December 2019 and the summarized consolidated income statement for the year ended 31 December 2019 for Jayamas Group. Show the detailed computation of the retained profit brought forward. Show all workings. Question 3 Set out below are the draft accounts of Jayamas Berhad and its subsidiaries and Kayamas Berhad. Jayamas Berhad acquired 40% of the equity capital of Kayamas Berhad on 1 January 2017 when the latter's reserves stood at RM140,000 Summarised Statements of Financial Position as at 31 December 2019 Tangible non-current assets Investment in Kayamas at cost Loan to Kayamas Berhad Current assets Loan from Jayamas Berhad Share capital Retained earnings Jayamas Kayamas Berhad & Berhad Subsidiaries RM'000 RM'000 1,870 570 560 220 100 150 (220) 2.750 500 250 100 2,500 400 2.750 500 The following information is relevant:- (i) The opening and closing inventory for both companies is :- Kobe RM'000 Josh W'000 Opening inventory 500 100 Closing inventory 500 100 (ii) The exchange rate to be used is as following:- RM W 1 January 2020 1 3 Average rate for the year 1 2.5 31 December 2020 1 2 Date of opening inventory was purchased Date of closing inventory was purchased 1 2.25 1 3 1 January 2014 date on which property, plant and equipment were acquired 1 3 Required: By assuming the subsidiary's functional currency is Ringgit Malaysia (RM), (a) (b) Prepare the consolidated statement of comprehensive income for Kobe Group for the year ended 31 December 2020. [10 marks] Prepare the consolidated statement of financial position for Kobe Group as at 31 December 2020. [15 marks] Current assets Inventory Receivables Bank Total Assets 500 100 900 500 300 200 5.900 3.800 Equity and liabilities Equity Equity shares capital (2.5 million shares for 2,500 2,000 Kobe and 2.0 million shares for Josh) Retained earnings brought forward 1,700 1,000 Profits for the year 1,500 400 5,700 3,400 Current liabilities Total equity and liabilities 200 400 5.900 3.800 Question 4 On January 1, 2020, Kobe Bbd acquired 75% of the issued ordinary share capital of Josh Ltd which is situated in Wonderland where the currency is W. The reserves of Josh on that date were W1 million. The financial statements of Kobe and Josh for the year ended 31 December 2020 are as follows: Statements of comprehensive income for the year ended 31 December Revenue Cost of sales Gross Profit Depreciation costs Administrative expenses Net Profit for the year 2020 Kobe Josh RM'000 W'000 5,500 2,000 (3,000) (800) 2,500 1,200 (400) (300) (600) (500) 1,500 400 Statements of financial position as at 31 December 2020 Non-Current Assets Property, plant and equipment Investment in Josh Kobe Josh RM'000 W'000 3,000 3,000 1,200 Nil 4,200 3,000 Summarised Statements of Comprehensive Income as at 31 December 2019 Profit before tax Income tax expense Jayamas Kayamas Berhad & Berhad Subsidiaries RM'000 RM'000 1,950 680 (350) (130) 1.600 550 Net profit for the year Notes (i) Assume that the associate's assets/liabilities are stated at fair value. (ii) Assume that there are no non-controlling interests in the subsidiary companies. Required: Prepare the summarised consolidated statement of financial position as at 31 December 2019 and the summarized consolidated income statement for the year ended 31 December 2019 for Jayamas Group. Show the detailed computation of the retained profit brought forward. Show all workings. Question 3 Set out below are the draft accounts of Jayamas Berhad and its subsidiaries and Kayamas Berhad. Jayamas Berhad acquired 40% of the equity capital of Kayamas Berhad on 1 January 2017 when the latter's reserves stood at RM140,000 Summarised Statements of Financial Position as at 31 December 2019 Tangible non-current assets Investment in Kayamas at cost Loan to Kayamas Berhad Current assets Loan from Jayamas Berhad Share capital Retained earnings Jayamas Kayamas Berhad & Berhad Subsidiaries RM'000 RM'000 1,870 570 560 220 100 150 (220) 2.750 500 250 100 2,500 400 2.750 500