The following information is relevant in the preparation of the group financial statements of the Prague Group:
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The following information is relevant in the preparation of the group financial statements of the Prague Group:
- On 1 January 2021 Prague Bhd acquired 70% of the ordinary share in Sofia Bhd. The consideration paid by Prague Bhd for these shares was RM600,000 cash. The accumulated profits of Sofia Bhd on 1 January 2021 were RM170,000. There have been no changes in Sofia Bhd’s issued share capital since then.
- On 30 December 2021 Prague Bhd acquired 25% of the non-redeemable preference shares in Sofia Bhd. The consideration paid to Sofia was RM10,000 cash.
- On 2 January 2021 Prague Bhd made a further acquisition by purchasing 25% of the ordinary shares in Ankara for RM85,000. The retained profits of Ankara at the date of acquisition were RM90,000.
- At the date of acquisition, Sofia’s plant had a fair value of RM50,000 higher than its book value at the date of acquisition. This revaluation has not been reflected in the books of Sofia. At the date of acquisition, the plant had an estimated life of 10 years.
- On 20 December 2021 Prague Bhd bought inventories from Sofia Bhd for RM30,000. The goods were sold at a markup of 20%. Of these sales, 80% of these goods were still in the inventory of Prague Bhd at year end.
- On 30 December 2021 Sofia Bhd made a payment of RM20,000 to Prague Bhd. The payment was only received and recorded by Prague Bhd on 4 January 2022.
- The goodwill arising on consolidation on Sofia Bhd had been impaired by RM10,000 in the current year ended 31 December 2021.
- On 31 December 2021, Prague Bhd proposed a dividend of 10 cents per share. Ankara Bhd had paid a dividend of 10 cents per share on 30 December 2021.
- It is group policy to value the non-controlling interest using the fair value method. The fair value of the non-controlling interest of Sofia Bhd at the date of acquisition was RM220,000
- All revenues and expenses are expected to accrue evenly throughout the year.
Required:
- Prepare a consolidated statement of comprehensive income for Prague Bhd and its group of companies for the year 31 December 2021. (Important: Explain in Excel.
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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