The draft Statements of Profit or Loss and Statements of Changes in Equity for White Bhd,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The draft Statements of Profit or Loss and Statements of Changes in Equity for White Bhd, Blue Bhd and Yellow Bhd for the year ended 31 December 2022 are as follows: Statements of Profit or Loss for the year ended 31 December 2022 White Bhd Blue Bhd RM million RM million 750 (300) 450 21 5 341 (85) 256 Revenue Cost of sales Operating expenses Rental income Retained profit bif Net profit for the year Ordinary dividend Retained profit cf Additional Information: 1. Investment in Blue Bhd 150 256 680 (360) 320 Gain on disposal of machinery Profit before taxation Taxation Net profit for the year Statements of Changes in Equity for the year ended 31 December 2022 White Bhd Blue Bhd Yellow Bhd RM million RM million RM million 406 (36) 370 . . 170 (40) 130 215 130 345 . Yellow Bhd RM million 345 450 (225) 225 10 135 (34) 101 105 101 206 (20) 186 White Bhd acquired 360 million equity shares in Blue Bhd on 1 January 2021 when Blue Bhd's retained profit was RM150 million. The acquisition was paid with a cash consideration of RM240 million and an issue of White Bhd's own ordinary shares of 56 million. The market value of ordinary shares in White Bhd on 1 January 2021 was RM4.50 per share. The paid up share capital of Blue Bhd was RM450 million ordinary shares with par value of RM1.00 each. On 1 January 2021, all assets were valued at their carrying amounts except for an item of intangible asset. The intangible asset had a fair value of RM10 million more than its carrying amount. The intangible asset had an indefinite useful life. 2. Investment in Yellow Bhd White Bhd acquired 70% of the 375 million ordinary shares in Yellow Bhd at RM1.00 each on 1 January 2022. White Bhd paid RM396 million in cash for the acquisition. All assets and liabilities of Yellow Bhd were valued at their carrying amounts on the acquisition date. 3. Yellow Bhd had acquired a machinery from White Bhd on 1 January 2022 for RM15 million. Its remaining useful life on that date was 5 years. White Bhd had recognised RM5 million gains on this disposal. 4. In August 2022, Yellow Bhd sold goods to White Bhd for RM30 million. These goods were sold at a margin of 20%. Two-third of these goods had been sold during the year. Goodwill on the acquisition of Yellow Bhd was found to be impaired by 20% during the year. Profits were deemed to accrue evenly throughout the year. The group's policy was to value non-controlling interests at a proportion of the fair value of the net assets of the subsidiary at the acquisition date. Required: 5. 6. 7. (a) (b) Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2022. Prepare the Consolidated Statement of Changes in Equity for the year ended 31 December 2022 showing the group retained profit and non-controlling interest only. The draft Statements of Profit or Loss and Statements of Changes in Equity for White Bhd, Blue Bhd and Yellow Bhd for the year ended 31 December 2022 are as follows: Statements of Profit or Loss for the year ended 31 December 2022 White Bhd Blue Bhd RM million RM million 750 (300) 450 21 5 341 (85) 256 Revenue Cost of sales Operating expenses Rental income Retained profit bif Net profit for the year Ordinary dividend Retained profit cf Additional Information: 1. Investment in Blue Bhd 150 256 680 (360) 320 Gain on disposal of machinery Profit before taxation Taxation Net profit for the year Statements of Changes in Equity for the year ended 31 December 2022 White Bhd Blue Bhd Yellow Bhd RM million RM million RM million 406 (36) 370 . . 170 (40) 130 215 130 345 . Yellow Bhd RM million 345 450 (225) 225 10 135 (34) 101 105 101 206 (20) 186 White Bhd acquired 360 million equity shares in Blue Bhd on 1 January 2021 when Blue Bhd's retained profit was RM150 million. The acquisition was paid with a cash consideration of RM240 million and an issue of White Bhd's own ordinary shares of 56 million. The market value of ordinary shares in White Bhd on 1 January 2021 was RM4.50 per share. The paid up share capital of Blue Bhd was RM450 million ordinary shares with par value of RM1.00 each. On 1 January 2021, all assets were valued at their carrying amounts except for an item of intangible asset. The intangible asset had a fair value of RM10 million more than its carrying amount. The intangible asset had an indefinite useful life. 2. Investment in Yellow Bhd White Bhd acquired 70% of the 375 million ordinary shares in Yellow Bhd at RM1.00 each on 1 January 2022. White Bhd paid RM396 million in cash for the acquisition. All assets and liabilities of Yellow Bhd were valued at their carrying amounts on the acquisition date. 3. Yellow Bhd had acquired a machinery from White Bhd on 1 January 2022 for RM15 million. Its remaining useful life on that date was 5 years. White Bhd had recognised RM5 million gains on this disposal. 4. In August 2022, Yellow Bhd sold goods to White Bhd for RM30 million. These goods were sold at a margin of 20%. Two-third of these goods had been sold during the year. Goodwill on the acquisition of Yellow Bhd was found to be impaired by 20% during the year. Profits were deemed to accrue evenly throughout the year. The group's policy was to value non-controlling interests at a proportion of the fair value of the net assets of the subsidiary at the acquisition date. Required: 5. 6. 7. (a) (b) Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2022. Prepare the Consolidated Statement of Changes in Equity for the year ended 31 December 2022 showing the group retained profit and non-controlling interest only.
Expert Answer:
Answer rating: 100% (QA)
a Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2022 1 Revenue White Bhd RM750m B... View the full answer
Related Book For
International Financial Reporting And Analysis
ISBN: 9781473766853
8th Edition
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
Posted Date:
Students also viewed these accounting questions
-
Prepare a graph to shows your order point determination. Item Total demand Ordering cost Carrying cost Delivery time stock Safety stock EOQ No of orders Inventory order point Average inventory level...
-
The statements of profit or loss and other comprehensive income and changes in equity for XY and its subsidiary AZ for the year ended 31 December 20X5 are shown below: Statement of profit or loss and...
-
Value Mapping Use the attached information to map the current state map and future state map. Jack's Taxes Jack is a CPA and maintains a practice in personal, self-employed and small business income...
-
Consider E-books again. The controller of E-books reads a widely used textbook that states that "the reciprocal method is conceptually the most defensible." He seeks your assistance. Required: 1....
-
When Phil Knight, a former college track athlete, and his former coach, Bill Bowerman, started a shoe company in 1962, they couldnt have known that they would ultimately create one of the worlds most...
-
Following data relate to an oil engine working on Otto cycle : Compression ratio \(=6 ;\) B.P. \(=14.8 \mathrm{~kW}\); Suction pressure \(=1\) bar and temp. \(=27^{\circ} \mathrm{C}\); Relative...
-
Segregation of duties is an important concept in internal control. However, segregation of duties is often a challenge for smaller businesses because they do not have sufficient staff to always...
-
On a dark evening, householders in Bling Road called police to report that a suspicious person was checking out houses in the street. The callers were unable to provide a physical description of the...
-
Copy Fast Services was opened by Jarenz on January 1, 2008 with a cash investment of P 10,000. Additional transactions for the month are as follows: Jan 245678 6 7 8 9 14 15 19 20 25 6456 33333 30 31...
-
1. Use iteration to solve the following recurrence: anan-1+2n, a =5
-
Assume that the corporate tax rate is 32% and the individual (personal) tax rate is 15%. Assume you are a shareholder of a corporation. Your share of the corporation's pre-tax income is $46,000. The...
-
Suppose 6 months ago a Swiss investor bought a 6-month US. Treasury bill at a price of $9,708.74, with a maturity value of $10,000.00. The exchange rate at that time was 0.931 Swiss francs (CHF) per...
-
York Health has $800,000 of debt outstanding, and it pays an interest rate of 10 percent annually on its bank loan. York's total revenues are $3,200,000; its average tax rate is 40 percent, and its...
-
The proper classification of liabilities as current assists decision-makers in determining the short-term and long-term cash needs of a company. Explain the impact on decision-makers and investors...
-
A javelin thrower throws a javelin straight up. It stays in the air for a total of 4 seconds (2 seconds up and 2 seconds down). The values of its acceleration while it's airborne is "-10m/s 2 ."...
-
A well-designed goal should be a. b. C. d. short and very specific about expected outcomes written in terms of outcomes rather than actions identifiable to even the first-line supervisors specific...
-
The following selected information was taken from Sun Valley Citys general fund statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 2019: Revenues:...
-
How does the IASB differentiate between financial instruments and other assets and liabilities?
-
Robby purchased plant, property and equipment (PPE) for $10 million on 1 June 20X9. It has an expected useful life of 20 years and is depreciated using the straight line method. On 31 May 20X1, the...
-
Explain to a non-accountant the difference between the income statement view and the balance sheet view of deferred tax.
-
How does risk affect the financial management of sport organizations?
-
Describe the process of determining a nominal interest rate.
-
Of MLB, the NBA, and the NHL, which league has the most risk, and which has the least? Why?
Study smarter with the SolutionInn App