1. The summarized financial statements for the year ended 31 December 2020 for Ayah Bhd. and Anak Bhd. are as follows: (a) Statements of profit or loss for the year ended 31 December 2020 Ayah Bhd. Anak Bhd. (RM1000) (RM'000) Sales 18 000 10 000 Cost of sales (10 800) (6 000) Gross profit 7 200 4 000 Operating expenses (960) (480) Interest on loan (850) (750) Profit before taxation 5 390 2 770 Taxation (1 340) (690) Profit after taxation 4 050 2 080 Dividends paid 930 (b) Anak Bhd. (RM'000) 10 000 Statements of financial position as at 31 December 2020 Ayah Bhd. (RM'000) Non-current assets 30 000 Plant, property and equipment 81 000 Investment in Anak Bhd., at cost Current assets Inventories 20 000 Accounts receivables 2 160 Bank balances 90 000 223 160 Equity Share capital 186 000 Retained profits 18 000 Non-current liabilities Loan, 5% interest 17 000 Current liabilities Accounts payables 2 160 223 160 10 000 1 800 1 70 500 92 300 60 000 16 800 15 000 500 92 300 2. Additional information: (i) ( Ayah Bhd. and Anak Bhd. have 186 million and 60 million ordinary shares in issue respectively as at 31 December 2020. No new issues had been made since their dates of incorporation. Ayah Bhd. has no subsidiary in the prior years and the investment in Anak Bhd. was carried at cost in its separate financial statements. However, in its primary financial statements, Ayah Bhd, applied the equity method to account for the investment in Anak Bhd. Ayah Bhd.'s investment in Anak Bhd. was acquired as follows: Cost of Date of Interest Market price per acquisition acquired investment (RM'000) share of S Bhd. 1 January 2018 30% 36 000 RM2.00 1 July 2020 30% 45 000 RM2.50 Additional information: (1) Ayah Bhd. and Anak Bhd. have 186 million and 60 million ordinary shares in issue respectively as at 31 December 2020. No new issues had been made since their dates of incorporation. (ii) Ayah Bhd. has no subsidiary in the prior years and the investment in Anak Bhd. was carried at cost in its separate financial statements. However, in its primary financial statements, Ayah Bhd applied the equity method to account for the investment in Anak Bhd. (iii) Ayah Bhd.'s investment in Anak Bhd. was acquired as follows: Date of Interest Cost of Market price per investment acquisition acquired (RM'000) share of S Bhd. 1 January 2018 30% 36 000 RM2.00 1 July 2020 30% 45 000 RM2.50 (iv) The retained profits of Anak Bhd. on 1 January 2018 were RM12 600 000. (v) Profits are deemed to be accrued evenly throughout the year ended 31 December 2020. (vi) It is the group's policy to value the non-controlling interest (NCT) at its fair value. Required: Prepare the consolidated financial statements of Ayah Bhd. and its group for the year ended 31 December 2020. 1. The summarized financial statements for the year ended 31 December 2020 for Ayah Bhd. and Anak Bhd. are as follows: (a) Statements of profit or loss for the year ended 31 December 2020 Ayah Bhd. Anak Bhd. (RM1000) (RM'000) Sales 18 000 10 000 Cost of sales (10 800) (6 000) Gross profit 7 200 4 000 Operating expenses (960) (480) Interest on loan (850) (750) Profit before taxation 5 390 2 770 Taxation (1 340) (690) Profit after taxation 4 050 2 080 Dividends paid 930 (b) Anak Bhd. (RM'000) 10 000 Statements of financial position as at 31 December 2020 Ayah Bhd. (RM'000) Non-current assets 30 000 Plant, property and equipment 81 000 Investment in Anak Bhd., at cost Current assets Inventories 20 000 Accounts receivables 2 160 Bank balances 90 000 223 160 Equity Share capital 186 000 Retained profits 18 000 Non-current liabilities Loan, 5% interest 17 000 Current liabilities Accounts payables 2 160 223 160 10 000 1 800 1 70 500 92 300 60 000 16 800 15 000 500 92 300 2. Additional information: (i) ( Ayah Bhd. and Anak Bhd. have 186 million and 60 million ordinary shares in issue respectively as at 31 December 2020. No new issues had been made since their dates of incorporation. Ayah Bhd. has no subsidiary in the prior years and the investment in Anak Bhd. was carried at cost in its separate financial statements. However, in its primary financial statements, Ayah Bhd, applied the equity method to account for the investment in Anak Bhd. Ayah Bhd.'s investment in Anak Bhd. was acquired as follows: Cost of Date of Interest Market price per acquisition acquired investment (RM'000) share of S Bhd. 1 January 2018 30% 36 000 RM2.00 1 July 2020 30% 45 000 RM2.50 Additional information: (1) Ayah Bhd. and Anak Bhd. have 186 million and 60 million ordinary shares in issue respectively as at 31 December 2020. No new issues had been made since their dates of incorporation. (ii) Ayah Bhd. has no subsidiary in the prior years and the investment in Anak Bhd. was carried at cost in its separate financial statements. However, in its primary financial statements, Ayah Bhd applied the equity method to account for the investment in Anak Bhd. (iii) Ayah Bhd.'s investment in Anak Bhd. was acquired as follows: Date of Interest Cost of Market price per investment acquisition acquired (RM'000) share of S Bhd. 1 January 2018 30% 36 000 RM2.00 1 July 2020 30% 45 000 RM2.50 (iv) The retained profits of Anak Bhd. on 1 January 2018 were RM12 600 000. (v) Profits are deemed to be accrued evenly throughout the year ended 31 December 2020. (vi) It is the group's policy to value the non-controlling interest (NCT) at its fair value. Required: Prepare the consolidated financial statements of Ayah Bhd. and its group for the year ended 31 December 2020