The summarised financial statements of the following companies at 31 March 20x3 are: Statements of Financial...

 

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The summarised financial statements of the following companies at 31 March 20x3 are: Statements of Financial Position as at 31 March 20x3 Assets Non-current assets Property and plant Intangible assets Investments in Silver & Bronze Current assets Inventories Dividend receivable, Bronze Trade receivables Current a/c: Silver & Bronze Cash Total Assets Equities and Liabilities Ordinary shares RM1 each Revaluation reserves Retained earnings Non-current liabilities Obligations under finance leases Gold RM'000 Silver RM'000 303,300 178,000 28,750 12,000 180,000 512,050 190,000 164,650 35,950 4,800 25,900 33,000 10,800 7.150 622.500 238.400 250,000 78,400 58,500 140,000 22,750 18,500 Bronze RM'000 47,500 140,650 24,000 40,000 18,500 18,250 100,000 125,000 9.500 210.900 36,820 Current Liabilities Trade payables Current a/c: Silver & Bronze Dividends proposed Other liabilities Total Equity and Liabilities 35,250 60,350 622,500 17,500 22,000 11,400 238,400 17,500 10,500 12,000 9,080 210.900 Statements of Comprehensive Income for the Year Ended 31 March 20x3 Revenue Cost of sales Gross profit Operating expenses Operating profit Dividend income from Silver Dividend income from Bronze Profit before tax Tax expense Profit for the period Statements of Changes in Retained Earnings for the Year Ended 31 March 20x3 Balance at 1 April 20x2 Profit for the period Less: Dividends paid Less: Dividends proposed Balance at 31 March 20x3 Gold Silver RM'000 RM'000 304,800 187,550 (185,750) (105,300) 119,050 82,250 (87,550) (48,500) 31,500 33,750 6,300 4,800 42,600 (8,400) 34,200 Gold RM'000 24,300 34,200 58,500 33,750 (6.100) 27,650 Silver RM'000 28,850 27,650 (9,000) 47,500 Bronze RM'000 138,220 (75,550) 62,670 (22,350) 40,320 40,320 (8,500) 31,820 Bronze RM'000 17,000 31,820 (12,000) 36,820 The following information is relevant to the preparation of the group financial statements of the Gold Group: . On 1 January 20x2, Gold acquired, for RM115,000,000, 70,000,000 ordinary shares in Silver when the retained earnings of Silver amounted to RM18,750,000 on 1 January 20x2. There have been no changes in Silver's ordinary shares since the acquisition dates. • Gold carried out a fair value exercise on 1 January 20x2 and concluded that the fair value of the plant of Silver was RM24,000,000 in excess of its carrying value in the financial statement of Silver. This change was not reflected in the financial statements of Silver plc. The property and plant were fully depreciable and had an estimated future useful economic life of 10 years on a straight-line basis. • Gold purchased 50,000,000 ordinary shares in Bronze for RM65,000,000 on 1 July 20x2. The fair values of all assets and liabilities of Bronze on 1 July 20x2 were equal to their carrying values in Bronze's financial statements. . In March 20x3, Gold sold goods to Silver for RM48,000,000 with 20% mark up on cost. Silver held 1/4 of these goods in inventory at the year-end. • A remittance of RM500,000, sent by Silver to Gold on 30 March 20x3, was not recorded in the books of Gold until 5 April 20x3. . Gold had made entries in its financial statements regarding the dividends income from Silver and Bronze. Silver paid its dividend on 15 March 20x3, Bronze declared its dividend before 31 March 20x3. The goodwill arising on consolidation of Silver is considered to be impaired by RM8,500,000 at 31 March 20x3. • The profits of Silver and Bronze for the year to 31 March 20x3 are expected to accrue evenly throughout the year. Required: a) Prepare a consolidated statement of comprehensive income for Gold and its group companies for the year to 31 March 20x3. b) Prepare a consolidated statement of financial position for Gold and its group companies for the year to 31 March 20x3. The summarised financial statements of the following companies at 31 March 20x3 are: Statements of Financial Position as at 31 March 20x3 Assets Non-current assets Property and plant Intangible assets Investments in Silver & Bronze Current assets Inventories Dividend receivable, Bronze Trade receivables Current a/c: Silver & Bronze Cash Total Assets Equities and Liabilities Ordinary shares RM1 each Revaluation reserves Retained earnings Non-current liabilities Obligations under finance leases Gold RM'000 Silver RM'000 303,300 178,000 28,750 12,000 180,000 512,050 190,000 164,650 35,950 4,800 25,900 33,000 10,800 7.150 622.500 238.400 250,000 78,400 58,500 140,000 22,750 18,500 Bronze RM'000 47,500 140,650 24,000 40,000 18,500 18,250 100,000 125,000 9.500 210.900 36,820 Current Liabilities Trade payables Current a/c: Silver & Bronze Dividends proposed Other liabilities Total Equity and Liabilities 35,250 60,350 622,500 17,500 22,000 11,400 238,400 17,500 10,500 12,000 9,080 210.900 Statements of Comprehensive Income for the Year Ended 31 March 20x3 Revenue Cost of sales Gross profit Operating expenses Operating profit Dividend income from Silver Dividend income from Bronze Profit before tax Tax expense Profit for the period Statements of Changes in Retained Earnings for the Year Ended 31 March 20x3 Balance at 1 April 20x2 Profit for the period Less: Dividends paid Less: Dividends proposed Balance at 31 March 20x3 Gold Silver RM'000 RM'000 304,800 187,550 (185,750) (105,300) 119,050 82,250 (87,550) (48,500) 31,500 33,750 6,300 4,800 42,600 (8,400) 34,200 Gold RM'000 24,300 34,200 58,500 33,750 (6.100) 27,650 Silver RM'000 28,850 27,650 (9,000) 47,500 Bronze RM'000 138,220 (75,550) 62,670 (22,350) 40,320 40,320 (8,500) 31,820 Bronze RM'000 17,000 31,820 (12,000) 36,820 The following information is relevant to the preparation of the group financial statements of the Gold Group: . On 1 January 20x2, Gold acquired, for RM115,000,000, 70,000,000 ordinary shares in Silver when the retained earnings of Silver amounted to RM18,750,000 on 1 January 20x2. There have been no changes in Silver's ordinary shares since the acquisition dates. • Gold carried out a fair value exercise on 1 January 20x2 and concluded that the fair value of the plant of Silver was RM24,000,000 in excess of its carrying value in the financial statement of Silver. This change was not reflected in the financial statements of Silver plc. The property and plant were fully depreciable and had an estimated future useful economic life of 10 years on a straight-line basis. • Gold purchased 50,000,000 ordinary shares in Bronze for RM65,000,000 on 1 July 20x2. The fair values of all assets and liabilities of Bronze on 1 July 20x2 were equal to their carrying values in Bronze's financial statements. . In March 20x3, Gold sold goods to Silver for RM48,000,000 with 20% mark up on cost. Silver held 1/4 of these goods in inventory at the year-end. • A remittance of RM500,000, sent by Silver to Gold on 30 March 20x3, was not recorded in the books of Gold until 5 April 20x3. . Gold had made entries in its financial statements regarding the dividends income from Silver and Bronze. Silver paid its dividend on 15 March 20x3, Bronze declared its dividend before 31 March 20x3. The goodwill arising on consolidation of Silver is considered to be impaired by RM8,500,000 at 31 March 20x3. • The profits of Silver and Bronze for the year to 31 March 20x3 are expected to accrue evenly throughout the year. Required: a) Prepare a consolidated statement of comprehensive income for Gold and its group companies for the year to 31 March 20x3. b) Prepare a consolidated statement of financial position for Gold and its group companies for the year to 31 March 20x3.

Answer rating: 100% (QA)

Working Note1 Calculation of Holding percentage Particulars Silver Bronze Total number of shares 100000000 125000000 Number of shares acquired by Gold 70000000 50000000 Percentage of Holding 70 40 Fro... View the full answer