On $1$ October $\backslash (20\backslash$times $5\backslash )$ Puma Bhd$,$ a manufacturing company based in Nilai, NS$,$ acquired a long term non$-$current investment in Siva Bhd$.$ Puma Bhd acquired $\backslash (80\backslash \%\backslash )$ of Siva Bhd$\text{'}$s equity share capital at a cost of RM$13\mathrm{.}6$ million and $\backslash (50\backslash \%\backslash )$ of Siva Bhd$\text{'}$s loan motes at par. On that date, Puma Bhd also acquired $1\mathrm{.}6$ million equity shares of Ann Bhd at a cost of $\backslash (\backslash$$ $6\mathrm{.}25\backslash )$ each. The total amount of shares in Ann Bhd is $4,000,000$ equity shares worth RM$1.$ The summarized draft statement of financial position of Puma Bhd and Siva Bhd at $31$ Marcg $\backslash (20\backslash$times $6\backslash )$ are as below: $\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}\backslash$hline & Puma Bhd RM$\text{'}000$ & Siva Bhd RM$\text{'}000\backslash \backslash \backslash$hline Non$-$current assets & & $\backslash \backslash \backslash$hline Property plant and equipment & $20,000$ & $8,500\backslash \backslash \backslash$hline investments & $26,000$ & nil $\backslash \backslash \backslash$hline & $46,000$ & $8,500\backslash \backslash \backslash$hline Current assets & $15,000$ & $8,000\backslash \backslash \backslash$hline & $\backslash (\backslash$underline$\{\backslash$underline$\{61,000\}\}\backslash )$ & $16,500\backslash \backslash \backslash$hline Equity and liabilities & & $\backslash \backslash \backslash$hline Equity & & $\backslash \backslash \backslash$hline Equity shares of RM$1$ each & $10,000$ & $3,000\backslash \backslash \backslash$hline Retained earnings & $37,000$ & $8,000\backslash \backslash \backslash$hline & $47,000$ & $11,000\backslash \backslash \backslash$hline $\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}\backslash$hline Non$-$current liabilities & & $\backslash \backslash \backslash$hline $8\backslash \%$ loan notes & $4,000$ & nil $\backslash \backslash \backslash$hline $10\backslash \%$ loan notes & nil & $2,000\backslash \backslash \backslash$hline Current liabilities & $10,000$ & $3,500\backslash \backslash \backslash$hline Total equity and liabilities & $61,000$ & $16,500\backslash \backslash \backslash$hline $\backslash$end$\{$tabular$\}$ The following information is relevant:

$($i$)$ The fair value of Siva Bhd$\text{'}$s assets were equal to their carrying amounts with the exception of land and plant. Siva Bhd$\text{'}$s land had a fair value of RM$400,000$ in excess of its carrying amount and plant had a fair value of RM$1\mathrm{.}6$ million in excess of its carrying amount. The plant had a remaining life of four years $($straight$-$line depreciation$)$ at the date of acquisition.

$($ii$)$ In the post acquisition period Puma Bhd sold goods to Siva Bhd at a price of RM$6$ million. These goods had cost Puma Bhd RM$4$ million. Half of these goods were still in the inventory of Siva Bhd at $31$ March $20$x$6.$ Siva Bhd had a balance of RM$1\mathrm{.}5$ million owing to Puma Bhd at $31$ March $20$x$6$ which agreed with Puma Bhd$\text{'}$s records.

$($iii$)$ The net profit after tax for the year ended $31$ March $20$x$6$ was RM$2$ million for Siva Bhd$\text{'}$s and RM$8$ million for Ann Bhd$.$ Assume profits accrued evenly throughout the year.

$($iv$)$ An impairment test at $31$ March $\backslash (20\backslash$times $6\backslash )$ concluded that consolidated goodwill was impaired by RM$400,000$ and the investment in Ann Bhd was impaired by RM$200,000.$

$($v$)$ No dividends were paid during the year by any of the companies.

$($vi$)$ It is group policy to value non$-$controlling interest at acquisition at full $($or fair$)$ value. The directors valued the non$-$controlling interest at acquisition at RM$3$ million.

Required:

$($a$)$ Discuss how investments purchased by Puma Bhd on $1$ October $\backslash (20\backslash$times $5\backslash )$ should be treated in its consolidated statements.

$(6$ marks$)$

$($b$)$ Prepare the consolidated statements of financial position for Puma Bhd as at $31$ March $20$x$6.$

$(27$ marks$)$

$($Total $33$ marks$)$

$($Show all your workings clearly$).$