1. Yan Bhd acquired 90% of 500 million ordinary shares of Tg Dawai Bhd on 1 August 2017 when the retained profit of Tg Dawai Bhd was RM800 million. The NCI was valued at RM200 million. The goodwill for this acquisition was RM20 million and 10% was impaired in 2021.

2. On 1 September 2021, Tg Dawai Bhd acquired 80% of 50 million ordinary shares in Semeling Bhd for RM180 million. The NCI was valued at RM80 million. On that date, the carrying amount of Semeling Bhds net assets reflected their fair values except for land. The carrying amount of the land was RM25 million and it was revalued to RM30 million. At the end of the year, the fair value of the land had increased by another RM3 million. Semeling Bhd did not incorporate the fair value in its accounts.

3. Yan Bhd acquired 10 million of 40 million ordinary shares in Merbok Bhd on 1 April 2021 for RM30 million. On this date, the carrying amount of the net assets of Merbok Bhd reflected their fair values except for a building. The fair value of this building was RM22.5 million and the carrying amount was RM14.5 million. The remaining useful life of the building was 10 years. On 31 December 2017, the recoverable amount of investment in Merbok Berhad was less than its carrying amount by RM1 million.

4. On 1 January 2019, Yan Bhd sold a machine with a carrying amount of RM8 million to Tg Dawai Bhd for RM12 million. On that date the remaining useful life of the machine was 4 years. The machine is still in Tg Dawai Bhds books as at 31 December 2021.

5. In 2020, Tg Dawai Bhd sold goods to Yan Bhd at a profit of RM1 million. The unrealised profits in the opening inventory for 2021 of Yan Bhd was RM200,000.

6. During the post-acquisition period, Semeling Bhd sold goods to Yan Bhd for RM43 million at a profit of RM3 million. At the end of the year, half of these goods remain unsold.

7. It is the group policy to depreciate all its assets using the straight-line method, giving full years depreciation in the year of purchase and none in the year of disposal.

8. All profits and losses are deemed to accrue evenly throughout the year.

9. It is the group policy to measure the non-controlling interest at fair value at the acquisition.

Required: a. Prepare the consolidated statement of profit or loss and other comprehensive income of Yan Bhd for the year ended 31 December 2021.

b. Prepare the consolidated statement of changes in equity of Yan Bhd for the year ended 31 December 2021 showing group retained profit and non-controlling interest only.

Given below are the Statements of Profit or Loss and Statements of Changes in Equity of Yan Bhd, Tg Dawai Bhd, Semeling Bhd and Merbok Bhd for the year ended 31 December 2021. Statements of profit or loss for the year ended 31 December 2021 Revenue Cost of sales Gross profit Operating expenses Other income Dividends from subsidiary Dividend from Merbok Bhd Finance cost Profit before tax Taxation Profit for the year Yan Bhd Retained profit brought forward Profit for the year Ordinary dividend paid in December 2021 Retained profit carried forward RM million 1,880 (820) 1,060 (470) 20 18 2.5 (49) 581.5 (102) 479.5 RM million 1,205 479.5 Tg Dawai Bhd (30) 1,654.5 RM million 1,250 (540) 710 (290) 12 (31) 401 (51) 350 980 350 Semeling Bhd RM million Statements of changes in equity for the year ended 31 December 2021 Yan Bhd Tg Dawai Bhd Semeling Bhd RM million RM million (20) 1,310 990 (540) 450 (120) 6 (21) 315 (24) 291 90 291 Merbok Bhd RM million (15) 366 60 30 30 (5) 26 2 24 Merbok Bhd RM million 65 24 (10) 79 Given below are the Statements of Profit or Loss and Statements of Changes in Equity of Yan Bhd, Tg Dawai Bhd, Semeling Bhd and Merbok Bhd for the year ended 31 December 2021. Statements of profit or loss for the year ended 31 December 2021 Revenue Cost of sales Gross profit Operating expenses Other income Dividends from subsidiary Dividend from Merbok Bhd Finance cost Profit before tax Taxation Profit for the year Yan Bhd Retained profit brought forward Profit for the year Ordinary dividend paid in December 2021 Retained profit carried forward RM million 1,880 (820) 1,060 (470) 20 18 2.5 (49) 581.5 (102) 479.5 RM million 1,205 479.5 Tg Dawai Bhd (30) 1,654.5 RM million 1,250 (540) 710 (290) 12 (31) 401 (51) 350 980 350 Semeling Bhd RM million Statements of changes in equity for the year ended 31 December 2021 Yan Bhd Tg Dawai Bhd Semeling Bhd RM million RM million (20) 1,310 990 (540) 450 (120) 6 (21) 315 (24) 291 90 291 Merbok Bhd RM million (15) 366 60 30 30 (5) 26 2 24 Merbok Bhd RM million 65 24 (10) 79