A. Apple Bhd acquired a 70% interest in Oppa Bhd on date, the ordinary shares of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A. Apple Bhd acquired a 70% interest in Oppa Bhd on date, the ordinary shares of Oppa Bhd was RM35,000,000 and the retained profit was RM10,000,000. On 1 January 2019 Oppa Bhd acquired a 60% interest in Jojo Bhd for RM23,000,000. The retained profit and ordinary shares of Jojo Bhd on this date were RM5,000,000 and RM25,000,000 respectively. It is the group's policy to value non-controlling interest at their proportionate share of their fair values of the net assets of the subsidiaries on the dates of acquisitions. 1 June 2017 for RM35,500,000. On this Required: Determine the goodwill on consolidation for the ultimate parent using the single stage method of consolidation. (5 marks) (CLO1:PLO1:C3) Mutiara Bhd is in the process to expand its business. Among the proposed strategies are as follows: В. Acquiring another business entity;B Invest in another entity but not exercising any control; or Engage in joint arrangement with joint control. i. 11. 111. Required: As the financial analyst, you are required to explain the details of each of the proposed strategies to the management. Your explanation should focus on definition, benefits and required accounting treatment for each of the strategy. A. Apple Bhd acquired a 70% interest in Oppa Bhd on date, the ordinary shares of Oppa Bhd was RM35,000,000 and the retained profit was RM10,000,000. On 1 January 2019 Oppa Bhd acquired a 60% interest in Jojo Bhd for RM23,000,000. The retained profit and ordinary shares of Jojo Bhd on this date were RM5,000,000 and RM25,000,000 respectively. It is the group's policy to value non-controlling interest at their proportionate share of their fair values of the net assets of the subsidiaries on the dates of acquisitions. 1 June 2017 for RM35,500,000. On this Required: Determine the goodwill on consolidation for the ultimate parent using the single stage method of consolidation. (5 marks) (CLO1:PLO1:C3) Mutiara Bhd is in the process to expand its business. Among the proposed strategies are as follows: В. Acquiring another business entity;B Invest in another entity but not exercising any control; or Engage in joint arrangement with joint control. i. 11. 111. Required: As the financial analyst, you are required to explain the details of each of the proposed strategies to the management. Your explanation should focus on definition, benefits and required accounting treatment for each of the strategy.
Expert Answer:
Answer rating: 100% (QA)
Answer to question A CALCULATION OF GOODWILL FOR ULTIMATE PARENT COMPANY APPLE BHD On acquisition of Oppa Bhd by Apple Bhd at a stake of 70 A Purchase ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
The ordinary shares of ZZZ are currently trading at 80p. The last dividend per share was 15p and its dividenads have been constant for ten years. The company plans to finance a new investment project...
-
Forest plc acquired 80% of the ordinary shares of Bulwell plc some years ago. At acquisition, the fair values of the assets of Bulwell plc were the same as their carrying value. Bulwell plc...
-
Forester Ltd acquired 80% of the ordinary shares of Gordon Ltd on 8 Jan 2014. At that time, the fair values of Gordon Ltd?s net assets were as follows: On 8 Jan 2014, Gordon Ltd had 1,000,000...
-
Solve the initial-value problem = * sin f, y(-2) = dt
-
A major airline manufacturer was found to be in violation of FAA safety rules and was forced to install additional safety devices in each of its planes within the next six months. The airline company...
-
Assume that you have just been hired as a financial analyst by Triple Play Inc., a mid-sized California company that specializes in creating high-fashion clothing. Because no one at Triple Play is...
-
In a pretest, 30 respondents were asked to express their preference for an outdoor lifestyle (V1) using a 7 -point scale $(1=$ not at all preferred, 7 = greatly preferred $)$. They were also asked to...
-
The following data represent the responses to two questions asked in a survey of 40 college students majoring in business: What is your gender? (M = male; F = female) and What is your major? (A =...
-
2-1. GASB Concepts Statement No. 3 discusses various methods of communicating financial accounting information to users. One method is using required supple- mentary information (RSI). What is RSI,...
-
Ashley Rhymer established Fair Play Financial Services on January 1, 2010. Fair Play Financial Services offers financial planning advice to its clients. The effect of each transaction and the...
-
At the end of an accounting period inventory will end up in one of two places. What are those two accounts? Inventory and Revenue O Inventory and Cost of Goods Sold Cost of Goods Sold Cost of Goods...
-
If in August Logan's sales is $3,000,000, while in July his cash collection is $2,910,000, what is Logan's total collection in August?
-
The shareholders' equity section of Houston Corp. at December 31, Y3 was: Common shares, no par value; authorized 20,000 shares; issued and outstanding 10,000 shares $50,000 Retained earnings 200,000...
-
Explain why do we call retained earnings "earned capital"? A Company was founded in 2013. Its yearly earnings and dividend payments are own here: 2013: Net income of $4,000, paid zero dividends 2014:...
-
If the variable cost per unit to produce a skateboard is $15 and the contribution rate is 30%, what is the contribution margin?
-
How much will Haveford Company move out of finished goods for the month of March? Beginning balances on March 1st are below: Raw materials: $2,000 Work in process: $1,000 Finished goods: $9,000 In...
-
Mr. Pous has just inaugurated his new jewelry workshop. His specialty is rings and bracelets. Due to the novelty of his business, Mr. Pous will specialize in the production of a certain model of ring...
-
Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows to A dollars, where A = P(1 + i) t . Trevor's parents deposit $7800...
-
Explain the meaning of the following terms. (a) Contributory plan. (b) Vested benefits. (c) Retroactive benefits.
-
What is meant by par value, and what is its significance to shareholders?
-
Stengel plc is preparing its opening IFRS statement of financial position on January 1, 2012. Under its previous GAAP, Stengel used the LIFO inventory method. Under LIFO, its inventory is reported at...
-
What are the key differences between financing entrepreneurial and established companies?
-
What steps are needed to show that entrepreneurial finance is beneficial to the economy at large?
-
What are the main challenges that entrepreneurs and investors face at the four steps of the funding cycle, as described in the FIRE framework?
Study smarter with the SolutionInn App