Question 3 Below are the financial statements of four entities for the year ended 31st December...

 

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Question 3 Below are the financial statements of four entities for the year ended 31st December 2020. Statements of Financial Position as at 31st December 2020 Peony RM'm Non-current assets Property, plant and equipment Financial investments Current assets Inventories Trade and other receivables Cash and cash equivalent Equity Ordinary shares (@RM1) Share premium Retained earnings Non-Current liabilities 10% Loan notes Current liabilities Bank Trade and other payables Income tax 26,360 17,550 43,910 8,980 1,811 1750 12,541 56,451 29,900 7,700 11,530 49,130 2,200 101 3,750 1,270 5,121 56,451 Silence Scabiosa Anthurium RM'm RM'm RM'm 13,150 4,800 17,950 6,050 2,000 1,149 9,199 27,149 2,400 8,938 13,200 4,700 2,200 4,650 20,050 403 3,891 405 4,699 5,005 27,149 5,005 1,750 1,148 1035 3.933 2,050 6,750 2,130 58 2,188 8,938 1,900 1,900 545 894 760 2,199 4,099 1,500 1320 2,820 1,260 19 1,279 4,099 The following information is available: (1) Peony acquired 10,560 million shares in Silence on 9 March 2017 for RM 15,964 million when Silence Plc's retained earnings were RM 3,700 million. (11) (11) Silence acquired 3,525 million shares in Scabiosa on 1 October 2018 for RM 5,000 million when retained earnings of Scabiosa were RM 1,740 million. Peony acquired 450 million shares in Anthurium on 1 April 2017, when the reserves of Anthurium were RM 1,200 million. The purchase consideration was RM 820 million. Since the acquisition, Peony has a representative on Anthurium's board of directors. (11) When Peony acquired its shareholding in Silence, a specialist company valued the property, plant, and equipment of Silence exceeded its book value by RM 480 million. At the date of acquisition, the property, plant, and equipment had a remaining useful life of 30 years. Silence's accounting policy is to depreciate the assets using straight line basis. A full depreciation is charged for assets held at year end. (iii) The fair value of the net assets of Scabiosa and Anthurium were equal to the carrying values. (iv) During the year, Silence sold goods to Peony for RM 600 million at a mark-up of 25%. 70% of the goods have been sold out. (v) Accounts payable of Silence includes RM 100 million due to Peony. The accounts receivable of Peony includes RM 240 million due from Silence. The difference is due to a payment in transit made by Silence to Peony. (vi) Peony decided to impair goodwill of Silence by 5% and charged it to administration expenses. There is no impairment of goodwill in Scabosia and Anthurium Required: Prepare the consolidated statement of financial position for the Peony Group for the year ending 31" December 2020. Question 3 Below are the financial statements of four entities for the year ended 31st December 2020. Statements of Financial Position as at 31st December 2020 Peony RM'm Non-current assets Property, plant and equipment Financial investments Current assets Inventories Trade and other receivables Cash and cash equivalent Equity Ordinary shares (@RM1) Share premium Retained earnings Non-Current liabilities 10% Loan notes Current liabilities Bank Trade and other payables Income tax 26,360 17,550 43,910 8,980 1,811 1750 12,541 56,451 29,900 7,700 11,530 49,130 2,200 101 3,750 1,270 5,121 56,451 Silence Scabiosa Anthurium RM'm RM'm RM'm 13,150 4,800 17,950 6,050 2,000 1,149 9,199 27,149 2,400 8,938 13,200 4,700 2,200 4,650 20,050 403 3,891 405 4,699 5,005 27,149 5,005 1,750 1,148 1035 3.933 2,050 6,750 2,130 58 2,188 8,938 1,900 1,900 545 894 760 2,199 4,099 1,500 1320 2,820 1,260 19 1,279 4,099 The following information is available: (1) Peony acquired 10,560 million shares in Silence on 9 March 2017 for RM 15,964 million when Silence Plc's retained earnings were RM 3,700 million. (11) (11) Silence acquired 3,525 million shares in Scabiosa on 1 October 2018 for RM 5,000 million when retained earnings of Scabiosa were RM 1,740 million. Peony acquired 450 million shares in Anthurium on 1 April 2017, when the reserves of Anthurium were RM 1,200 million. The purchase consideration was RM 820 million. Since the acquisition, Peony has a representative on Anthurium's board of directors. (11) When Peony acquired its shareholding in Silence, a specialist company valued the property, plant, and equipment of Silence exceeded its book value by RM 480 million. At the date of acquisition, the property, plant, and equipment had a remaining useful life of 30 years. Silence's accounting policy is to depreciate the assets using straight line basis. A full depreciation is charged for assets held at year end. (iii) The fair value of the net assets of Scabiosa and Anthurium were equal to the carrying values. (iv) During the year, Silence sold goods to Peony for RM 600 million at a mark-up of 25%. 70% of the goods have been sold out. (v) Accounts payable of Silence includes RM 100 million due to Peony. The accounts receivable of Peony includes RM 240 million due from Silence. The difference is due to a payment in transit made by Silence to Peony. (vi) Peony decided to impair goodwill of Silence by 5% and charged it to administration expenses. There is no impairment of goodwill in Scabosia and Anthurium Required: Prepare the consolidated statement of financial position for the Peony Group for the year ending 31" December 2020.

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Peony Group Consolidated Statement of Financial Positi... View the full answer