Gaya Sdn Bhd has investments in two companies, Senang Sdn Bhd and Cergas Sdn Bhd, and...

  

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Gaya Sdn Bhd has investments in two companies, Senang Sdn Bhd and Cergas Sdn Bhd, and recognises goodwill and non-controlling interest using the proportionate method. The draft summarised statements of financial position of the three companies at 31 December 2021 are shown below: ASSETS Non-current assets Property, plant and equipment Investments Current assets Inventories Trade and other receivables Cash and cash equivalents Total assets EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings Current liabilities Trade and other payables Current tax payable Total equity and liabilities Gaya Sdn Bhd RM 1,324,000 1,120,000 2,444,000 344,000 295,600 14,200 653,800 3,097,800 1,600,000 561,800 2,161,800 576,000 360,000 936,000 3,097,800 Senang Sdn Cergas Sdn Bhd Bhd RM RM 474,000 0 474,000 159,400 131,000 3,200 293,600 767,600 300,000 89,700 389,700 240,900 137,000 377,900 767,600 335,000 0 335,000 135,300 129,400 1,800 266,500 601,500 200,000 45,600 245,600 231,900 124,000 355,900 601,500 Additional information: Date of acquisition Percentage of ordinary shares acquired Consideration Retained earnings at date of acquisition Goodwill impairment on 31 December 2020 Goodwill impairment on 31 December 2021 Senang Sdn Bhd RM Cergas Sdn Bhd RM 1 January 2016 1 January 2021 70% 80% 580,000 42,400 32,000 540,000 20,000 10,000 (1) At the date of acquisition, the fair values of the assets and liabilities of Senang Sdn Bhd and Cergas Sdn Bhd were equal to their carrying amounts, with one exception. Cergas Sdn Bhd has an internally generated brand that was not recognised in its financial statements. However, an independent expert valued this brand at RM80,000, with a useful life of five years, at the date of acquisition of Cergas Sdn Bhd by Gaya Sdn Bhd. (2) On 1 January 2021, Gaya Sdn Bhd sold a machine to Senang Sdn Bhd for RM150,000. On that date, the machine had a remaining useful life of five years and a carrying amount of RM100,000. Required: (a) Prepare the consolidated statement of financial position of Gaya Sdn Bhd as at 31 December 2021. (20 marks) (b) Explain the differences between MFRS/IFRS and UK GAAP regarding financial reporting for the disposal of subsidiary, goodwill and non-controlling interest. (5 marks) Gaya Sdn Bhd has investments in two companies, Senang Sdn Bhd and Cergas Sdn Bhd, and recognises goodwill and non-controlling interest using the proportionate method. The draft summarised statements of financial position of the three companies at 31 December 2021 are shown below: ASSETS Non-current assets Property, plant and equipment Investments Current assets Inventories Trade and other receivables Cash and cash equivalents Total assets EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings Current liabilities Trade and other payables Current tax payable Total equity and liabilities Gaya Sdn Bhd RM 1,324,000 1,120,000 2,444,000 344,000 295,600 14,200 653,800 3,097,800 1,600,000 561,800 2,161,800 576,000 360,000 936,000 3,097,800 Senang Sdn Cergas Sdn Bhd Bhd RM RM 474,000 0 474,000 159,400 131,000 3,200 293,600 767,600 300,000 89,700 389,700 240,900 137,000 377,900 767,600 335,000 0 335,000 135,300 129,400 1,800 266,500 601,500 200,000 45,600 245,600 231,900 124,000 355,900 601,500 Additional information: Date of acquisition Percentage of ordinary shares acquired Consideration Retained earnings at date of acquisition Goodwill impairment on 31 December 2020 Goodwill impairment on 31 December 2021 Senang Sdn Bhd RM Cergas Sdn Bhd RM 1 January 2016 1 January 2021 70% 80% 580,000 42,400 32,000 540,000 20,000 10,000 (1) At the date of acquisition, the fair values of the assets and liabilities of Senang Sdn Bhd and Cergas Sdn Bhd were equal to their carrying amounts, with one exception. Cergas Sdn Bhd has an internally generated brand that was not recognised in its financial statements. However, an independent expert valued this brand at RM80,000, with a useful life of five years, at the date of acquisition of Cergas Sdn Bhd by Gaya Sdn Bhd. (2) On 1 January 2021, Gaya Sdn Bhd sold a machine to Senang Sdn Bhd for RM150,000. On that date, the machine had a remaining useful life of five years and a carrying amount of RM100,000. Required: (a) Prepare the consolidated statement of financial position of Gaya Sdn Bhd as at 31 December 2021. (20 marks) (b) Explain the differences between MFRS/IFRS and UK GAAP regarding financial reporting for the disposal of subsidiary, goodwill and non-controlling interest. (5 marks)

Answer rating: 100% (QA)

GAJA SDN BHD CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31 2021 RM ASSETS Noncurren... View the full answer