Question: Please help me i will give good rating Jaguh sdn bhd acquired 80% of the ordinary shares in Matahari sdn bhd on 1 january 2017,

Please help me i will give good rating

Please help me i will give good rating Jaguh sdn bhd acquired

80% of the ordinary shares in Matahari sdn bhd on 1 january

2017, when Matahari sdn bhd retained earning were RM3,750,000. On 1 january

Jaguh sdn bhd acquired 80% of the ordinary shares in Matahari sdn bhd on 1 january 2017, when Matahari sdn bhd retained earning were RM3,750,000. On 1 january 2017, Matahari sdn bhd acquired 11 80% of ordinary shares in Maju sdn bhd when Maju sdn bhd retained earnings were RM1,250,000. The non-controlling interest and goodwill arising on the acquisition of subsidiaries were both calculated using the proportionate method. The financial statements of three companies in a group for the year 2020 are as follows: Statements of profit or loss for the year ended 31 December 2020 Jaguh Matahari Maju Sdn Bhd Sdn Bhd Sdn Bhd RM'000 RM'000 RM'000 Revenue 125,000 25,000 12,500 Cost of sales (62,500) 19,375 (5,625) Gross profit 62,500 5625 6,875 Operating expenses (31,250) (2500) (1,875) Profit before tax 31,250 3,125 5,000 Tax (18,125) (656) (1,063) Profit after tax 13,125 2,469 3,938 Statement of changes in equity (Partial) for the year ended 31 December 2020 Jaguh Matahari Maju Sdn Bhd Sdn Bhd Sdn Bhd RM000 RM000 RM'000 Beginning retained 25,000 5,000 2,500 earnings Profit for the year 13,125 2,469 3,938 Dividend (5,000) 0 0 Ending retained 33,125 7,469 6,438 earnings Statement of Financial position on 31 December 2020 Jaguh Matahari Sdn Bhd Sdn Bhd RM'000 RM000 Ordinary Shares 25,000 10,000 Retained earnings 33,125 7,469 Other liabilities 24,688 1,650 Total equity and 82,813 19,119 liabilities Maju Sdn Bhd RM'000 3.750 6,438 1,275 1,275 25,000 0 0 0 Investment in Matahari Sdn Bhd Investment in Maju sdn Bhd Other assets Total Assets 10,000 0 57,813 82,813 9.119 19,119 11,463 11,463 There was an impairment loss of RM625,000 written off in 2019 arising from the acquisition of Matahari sdn bhd. There is no impairment loss arising from the acquisition of Maju sdn bhd The group starts to sell to each other in 2020 at cost plus 25%. During the year 2020, Matahari sdn bhd sold RM2,500,000 worth of goods to Jaguh Sdn Bhd. On 31 december 2020, RM1,250,000 of these goods were still in the ending inventory of Jaguh sdn bhd. Required: (a) Identify indirect interest in the subsidiary, prepare the consolidated statement of profit or loss Jaguh sdn bhd and its subsidiaries for the year ended 31 december 2020. (b) Identify indirect interest in the subsidiary, prepare the consolidated statement of financial position of Jaguh sdn bhd and its subsidiaries on 31 december 2020. (c) Distinguish between functional currency and presentation currency. Explain the effect on property, plant and equipment if Maju sdn bhd is a foreign operation

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