Provided below are the Statement of Financial Position of two companies known as Aber Bhd and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Provided below are the Statement of Financial Position of two companies known as Aber Bhd and Aish Bhd. as at 31 December 2021. Non-current assets Land Building Plant and machinery Research and development Investment in Aish Bhd. at cost 912,500 ordinary shares Total non-current assets Current assets Inventories Bank Trade receivables Total current assets Total assets Equity 1,250,000 units Ordinary shares 4,000,000 units Ordinary shares Revaluation reserve General reserve Retained profit Total equity Current liability Trade payables Total current liabilities Total equity and liabilities parent Aber Bhd. RM 2,300,000 3,100,000 1,450,000 5,500,000 12,350,000 805,280 500,000 280,000 1,585,280 13,935,280 5,780,000 310,000 285,000 4,813,000 11,188,000 2,747,280 2,747,280 13,935,280 subsi Aish Bhd. RM 1,500,000 1,400,000 600,000 300,000 3,800,000 380,000 1,600,000 114,500 2,094,500 5,894,500 2,500,000 660,000 290,000 1,060,000 4,510,000 1,384,500 1,384,500 5,894,500 Additional information: (1) Aber Bhd. acquired the ordinary shares of Aish Bhd. on 1 January 2018. On 1 January 2018, Aish Bhd.'s general reserve was RM89,000 and retained profit was RM560,000. (ii) (iii) (iv) Information on Aish's asset fair value on 1 January 2018 were as provided below: (Note: subsidiary did not recognize fair value of its non-current assets). On 1 January 2018, the fair value of land were RM2,500,000. There is no new acquisition of land subsequent to the date. On acquisition date, the remaining life of the building is 45 years and the fair value was RM2,800,000. Plant and machinery with remaining useful life of 10 years was identified to have fair value of RM1,250,000. Brand in Aish Bhd. were valued at RM490,000. The remaining life of the brand was 25 years. Only 80% of Aish Bhd. total research and development agreed to be recognized by parent. At the point of acquisition, Aish Bhd. have not start amortizing. Aber Bhd decided that the agreed amount need to be amortized starting on 31 December 2019 at 10%. The fair value of land on 31 December 2020 is RM3,900,000,fair value of building RM2,500,000 and fair value of plant and machinery RM960,000. Included in Aber Bhd trade receivable was an amount of RM60,000 owed by Aish Bhd. The fair value of Aish Bhd on acquisition date was RM5,800,000. On 31 December 2021, goodwill was impaired by RM400,000. (v) (vi) (vii) The company calculate full goodwill. Required to: (a) Calculate goodwill on consolidation. (b) Prepare the consolidation joumal entries. (Note: Show all relevant workings) (c) Prepare the Consolidated Statement of Financial Position as at 31 December 2021. Provided below are the Statement of Financial Position of two companies known as Aber Bhd and Aish Bhd. as at 31 December 2021. Non-current assets Land Building Plant and machinery Research and development Investment in Aish Bhd. at cost 912,500 ordinary shares Total non-current assets Current assets Inventories Bank Trade receivables Total current assets Total assets Equity 1,250,000 units Ordinary shares 4,000,000 units Ordinary shares Revaluation reserve General reserve Retained profit Total equity Current liability Trade payables Total current liabilities Total equity and liabilities parent Aber Bhd. RM 2,300,000 3,100,000 1,450,000 5,500,000 12,350,000 805,280 500,000 280,000 1,585,280 13,935,280 5,780,000 310,000 285,000 4,813,000 11,188,000 2,747,280 2,747,280 13,935,280 subsi Aish Bhd. RM 1,500,000 1,400,000 600,000 300,000 3,800,000 380,000 1,600,000 114,500 2,094,500 5,894,500 2,500,000 660,000 290,000 1,060,000 4,510,000 1,384,500 1,384,500 5,894,500 Additional information: (1) Aber Bhd. acquired the ordinary shares of Aish Bhd. on 1 January 2018. On 1 January 2018, Aish Bhd.'s general reserve was RM89,000 and retained profit was RM560,000. (ii) (iii) (iv) Information on Aish's asset fair value on 1 January 2018 were as provided below: (Note: subsidiary did not recognize fair value of its non-current assets). On 1 January 2018, the fair value of land were RM2,500,000. There is no new acquisition of land subsequent to the date. On acquisition date, the remaining life of the building is 45 years and the fair value was RM2,800,000. Plant and machinery with remaining useful life of 10 years was identified to have fair value of RM1,250,000. Brand in Aish Bhd. were valued at RM490,000. The remaining life of the brand was 25 years. Only 80% of Aish Bhd. total research and development agreed to be recognized by parent. At the point of acquisition, Aish Bhd. have not start amortizing. Aber Bhd decided that the agreed amount need to be amortized starting on 31 December 2019 at 10%. The fair value of land on 31 December 2020 is RM3,900,000,fair value of building RM2,500,000 and fair value of plant and machinery RM960,000. Included in Aber Bhd trade receivable was an amount of RM60,000 owed by Aish Bhd. The fair value of Aish Bhd on acquisition date was RM5,800,000. On 31 December 2021, goodwill was impaired by RM400,000. (v) (vi) (vii) The company calculate full goodwill. Required to: (a) Calculate goodwill on consolidation. (b) Prepare the consolidation joumal entries. (Note: Show all relevant workings) (c) Prepare the Consolidated Statement of Financial Position as at 31 December 2021.
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
Students also viewed these accounting questions
-
The following are the Statement of Financial Position of Belcon Bhd and Corin Bhd as at 31 December 2020. Corin Bhd RM Belcon Bhd RM Non-current assets Land Plant & Machinery (carrying value)...
-
The following are the Statement of Financial Position of Belcon Bhd and Corin Bhd as at 31 December 2020. Belcon Bhd RM Corin Bhd RM Non-current assets Land Plant & Machinery (carrying value)...
-
Prepare the Statement of Cashflow using the INDIRECT METHOD as at 29 February 2021. Show all the necessary workings. Statement of Comprehensive Income for the year ended 28 February 2021 R Revenue...
-
Which of the following variables was controlled in Experiment 1? F. Amount of yeast G. Percent of molasses H. Percent of sucrose J. Carbon dioxide levels Experiment 1 Since yeast needs sucrose to...
-
It's Kinda China produces collectible pieces of art. The company's Raw material Inventory account includes the costs of both direct and indirect materials. Account balances for the company at the...
-
Refer to scenario in Problem 4 using the le BlueOrRed. Create a standard partition of the data with all the tracked variables and 50% of observations in the training set, 30% in the validation set,...
-
Which depreciation method usually produces the most depreciation in the first year? a. Straight-line b. Units-of-production c. Double-declining-balance d. All produce the same amount of depreciation...
-
The Circulation Manager of the Daily Advocate newspaper commissions a market research study to determine what factors underlie the circulation attrition. Specifically, the survey is designed to...
-
Due to 03/20 10pm 5 sur 7 YORK UNIVERSITY MATH 1581 3.0 M WRITTEN ASSIGNMENT 1 5 5. (10+10 points). (a) A debt of $2,000 will be repaid by monthly payments of $600 for as long as necessary, the first...
-
Aritzia Inc.s financial statements have been reproduced in Appendix A at the back of the textbook. Instructions a. Many companies use a calendar year for their financial statements. What does Aritzia...
-
Noah invested $5000 in an investment fund. Determine the accumulated value of his investment at the end of 8 years if the interest rate was j2 = 6.5% for the first 3 years, j4 = 6.4% for the next 4...
-
Watertown, Inc. was founded in May, 2005 by Lawrence Rollins, who was employed for 20 years prior as a river rafting guide. Mr. Rollins received an unexpected inheritance of $2,000,000 in January,...
-
Joe owns a bond which is callable in 3 years. The bond has a 6 percent coupon, pays interest semiannually, has a par value of $1,000, and has a yield to call of 6.3 percent. What is the call premium...
-
what are the three most important steps to building an inclusive, anti-racist workplace and why?
-
List five keys to building powerful listening skills and explain why they lead to improved listening effectiveness.
-
Subtract. 5x+10y 9x-11y 4x 4x Simplify your answer as much as possible.
-
Passive solar power involves using ________. A. the energy of sunlight without relying on electrical or mechanical devices B. mechanical devices to heat water and buildings or electrical devices to...
-
A spacecraft has left the earth and is moving toward Mars. An observer on the earth finds that, relative to measurements made when the spacecraft was at rest, its a. length is shorter b. KE is less...
-
Accounting information provides useful data about business transactions and events. The people who provide and use financial reports must often select and evaluate accounting alternatives. The...
-
Krisrali Corporation traded a used truck (cost $23,000, accumulated depreciation $20,700) for another used truck worth $3,700. Kristali also paid $3 00 cash in the transaction. Prepare the journal...
-
Petri Corporation purchased equipment for an invoice price of $40,000, terms 2/10, n/30. (a) Record the purchase of the equipment and the subsequent payment, assuming the payment was made within the...
-
A nurse at a medical center claims that the median number of flu shots they give per day is 30. To test the claim, the nurse randomly selects 20 days during the months of September, October, and...
-
The Pennsylvania Turnpike Commission allows travelers to use a purchased Easy Pass for tolls on the Pennsylvania Turnpike. A researcher hypothesizes that the median of the number of Easy Pass users...
-
Two independent random samples of army and marine recruits are selected, and the time in minutes it takes each recruit to complete an obstacle course is recorded, as shown in the table. At...
Study smarter with the SolutionInn App