Question $1$

$($a$)$The following are the draft statement of financial position and statement of profit and loss of P Co and S Co as at $30$ September $2022$:

$\backslash$table$[[,$PCo.,S Co$.],[$Assets$,$RM$,$RM$],[$Non$-$current assets,,$],[$Property$,$ plan and equipment,$392,000,84,000],[$Investment$,120,000,-],[,512,000,84,000],[$Current assets,$54,700,44,650],[$Total assets,$606,700,128,658],[,,],[$EQUITY AND LIABILITIES,,$],[$Equity$,,],[$Equity shares,$190,000,60,000],[$Retained earnings,$210\mathrm{.}000,36,400],[$Revaluation surplus,$41,400,4,000],[,441,400,100,500],[$Non$-$current liabilities,,$],[$Deferred consideration,$28,000,-],[$Current liabilities,$137,300,28,150],[$Total equity and liabilities,$606,700,128,650)]]$

The following information is relevant:

$($i$)$ On $1$ October $2021,$ P Co asquired $80\%$ of share capital of S Co$.$ At this date the retained carning of S Co were RM$34$m and revalaution surplus stood at RM$4$m$.$ P Co paid an initial cash amount of RM$92$m and agreed to pay the owners of S Co a further RM$28$m on $1$ October $2023.$ The accountant has recorded the full amount of both element of the consideration in investment. P Co has a cost of capital of $8\%.$ The appropriate discount rate is $0\mathrm{.}857.$

$($ii$)$ On $1$ October $2021,$ the fair value of S Co's net assets were equal to their carrying amount with the exception of some inventory which had cost RM$3$m but had a fair value of RM$3\mathrm{.}6$m$.$ On $30$ September $2022,10\%$ of these goods remained in the investmet of S Co $.$

$($iii$)$ During the year, P Co sold goods totaling RM $8$ m to S Co at a gross profit margin $25\%.$ At $30$ September $2022,$ S Costill held RM$1$m of these goods in inventory. P Co's normal margin $($ie third party customer$)$ is $43\%.$

$($iv$)$ The $P$ group uses the fair value method to value the non$-$controlling interest. At acquisition the non$-$controlling interest was valued at RM $15$ m $.$

Required:

Prepare the c$9$nsolidated statement of financial position of P group as at $30$ September $2022.($b$)$ Explain any TWO $(2)$ difference between accounting for subsidiaries and association companies

$($c$)$ X Bhd acquires $75\%$ of the issed shares capital of M Bhd on $31$ December $2021.$ These are no intra$-$group transaction. The statement of profit or loss of $x$ Bhd and $M$ Bhd for the year ended $31$ December $2022$ are as follows:

$\backslash$table$[[,$X Bhd$,$M Bhd$],[,$RM$\text{'}000,$RM$\text{'}000],[$Sales$,100,80],[$Cost of sales,$30,20],[$Gross profit,$70,60],[$Operating expenses,$20,30],[$Profit before tax,$50,30],[$Tax$,15,10],[$Profit after tax,$35,20]]$

Required:

Prepare the c$9$nsolidated statement of profit or loss for $x$ Berhad for the year ended $31$ December $2022.$