Given below are the statements of profit or loss and other comprehensive income of Golden Bhd,...

 

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Given below are the statements of profit or loss and other comprehensive income of Golden Bhd, Brownish Bhd and Greyish Bhd for the year ended 30 June 2019. Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019 Golden Bhd Brownish Bhd RM '000 RM '000 Sales Cost of Sales Gross profit Dividend income Income from quoted investments Other income Operating expenses Finance costs Profit before taxation Taxation Profit after taxation Other comprehensive income Revaluation surplus Total comprehensive income Ordinary dividend payable Retained profit brought forward 209,000 (139,000) 70,000 560 290 (7,000) (3,800) 60,050 (14,420) 45,630 400 46,030 1,000 160,000 55,000 (25,000) 30,000 100 (4,800) (2,500) 22,800 (6,000) 16,800 150 16,950 700 65,000 Greyish Bhd RM '000 44,000 (23,000) 21,000 (4,100) (2,200) 14,700 (2,500) 12,200 500 12,700 100 25,000 Additional information: 1. Golden Bhd acquired 70% of the 70 million issued ordinary shares of Brownish Bhd on 1 July 2015 for RM55 million. On this date, the retained profit of Brownish Bhd was RM10 million. 2. As the business is expanding, Golden Bhd acquired another company, Greyish Bhd on 1 July 2017. A total of 7 million out of the 10 million issued ordinary shares of Greyish Bhd was acquired at a cost of RM15 million. At that date, the retained profit of Greyish Bhd was RM12 million. 3. During the year, Golden Bhd sold goods to Greyish Bhd for RM5 million. Another RM1.5 million of the goods are remained in the inventory of Greyish Bhd at the end of the year. All sales are invoiced at a profit of 20% on sales. 4. Golden Bhd also found to have an interest of 25% in another company, Skinny Bhd since 1 July 2018. Skinny Bhd reported a profit after tax in the year ended 2019 amounting to RM 5 million. 5. Dividend income of Golden Bhd was received from its investee, Brownish Bhd and Greyish Bhd. 6. All expenses and revenue are deemed to accrue evenly throughout the year. 7. Policy of the group is to measure non-controlling interests at their proportionate interest in the value of the net assets of the subsidiary. Required: a. b. Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019. (24 marks) Determine the group retained profit balance as at 30 June 2019. (6 marks) Given below are the statements of profit or loss and other comprehensive income of Golden Bhd, Brownish Bhd and Greyish Bhd for the year ended 30 June 2019. Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019 Golden Bhd Brownish Bhd RM '000 RM '000 Sales Cost of Sales Gross profit Dividend income Income from quoted investments Other income Operating expenses Finance costs Profit before taxation Taxation Profit after taxation Other comprehensive income Revaluation surplus Total comprehensive income Ordinary dividend payable Retained profit brought forward 209,000 (139,000) 70,000 560 290 (7,000) (3,800) 60,050 (14,420) 45,630 400 46,030 1,000 160,000 55,000 (25,000) 30,000 100 (4,800) (2,500) 22,800 (6,000) 16,800 150 16,950 700 65,000 Greyish Bhd RM '000 44,000 (23,000) 21,000 (4,100) (2,200) 14,700 (2,500) 12,200 500 12,700 100 25,000 Additional information: 1. Golden Bhd acquired 70% of the 70 million issued ordinary shares of Brownish Bhd on 1 July 2015 for RM55 million. On this date, the retained profit of Brownish Bhd was RM10 million. 2. As the business is expanding, Golden Bhd acquired another company, Greyish Bhd on 1 July 2017. A total of 7 million out of the 10 million issued ordinary shares of Greyish Bhd was acquired at a cost of RM15 million. At that date, the retained profit of Greyish Bhd was RM12 million. 3. During the year, Golden Bhd sold goods to Greyish Bhd for RM5 million. Another RM1.5 million of the goods are remained in the inventory of Greyish Bhd at the end of the year. All sales are invoiced at a profit of 20% on sales. 4. Golden Bhd also found to have an interest of 25% in another company, Skinny Bhd since 1 July 2018. Skinny Bhd reported a profit after tax in the year ended 2019 amounting to RM 5 million. 5. Dividend income of Golden Bhd was received from its investee, Brownish Bhd and Greyish Bhd. 6. All expenses and revenue are deemed to accrue evenly throughout the year. 7. Policy of the group is to measure non-controlling interests at their proportionate interest in the value of the net assets of the subsidiary. Required: a. b. Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019. (24 marks) Determine the group retained profit balance as at 30 June 2019. (6 marks)

Answer rating: 100% (QA)

a Consolidated statement of Profit loss Consolidated statement of Profit Loss and Other Comprehensiv... View the full answer