2 (35 MARKS) Given below are the balances of Sing Berhad and King Berhad as at 31 December 2021. Sing Berhad RM King Berhad RM Non-current assets Land and Building 300,000 305,000 Other non-current assets 400,000 185,000 Investment in King Berhad Ordinary shares 283,000 10% Debentures 27,000 Current assets Inventories Trade receivables Bank 40,000 20,000 25,000 40,000 25,000 35,000 1,100,000 585,000 Equity Ordinary shares 800,000 395,000 200,000 5% preference shares 100,000 40,000 10% preference shares 20,000 Retained earnings 150,000 90,000 Non-current liabilities 10% Debentures 45,000 Current liabilities Trade payables Debenture interest payables 50,000 30,000 5,000 1,100,000 585,000 Additional information: 1. Sing Berhad acquired 237,000 of the 395,000 issued ordinary shares and RM27,000 10% debentures of King Berhad on 1 January 2021 when the retained profit of King Berhad was RM50,000. Non-controlling interest is measured based on the fair value of the net assets of the subsidiary. 2. 3. 4. 5. 6. 7. The fair value of the land of King Berhad on 1 January 2021 was RM20,000 more than its carrying value. In the year 2021, King Berhad sold inventories of sale value RM12,000 to Sing Berhad. King Berhad sold the inventories at cost plus 30 percent and all of the inventories remain unsold at the end of the accounting period. Sing Berhad sold a piece of land in December 2021 costing RM50,000 for RM80,000 to King Berhad. Sing Berhad does not intend to sell this land. Included in the trade receivable of Rizal Berhad is RM10,000 due from King Berhad. However, King Berhad sent RM6,500 on 30 December 2021, which Sing Berhad received on 15 January 2022. The director of Sing Berhad declared the following dividends on 30 December 2021: Ordinary shares Preference dividends Sing Berhad RM28,000 RM5,000 Sing Berhad has not taken credit for its debenture interest due from King Berhad. Required: a. b. Prepare the Consolidated Statement of Financial Position of Sing Berhad and its subsidiary, King Bhd as at 31 December 2021 in accordance with MFRS 10 Consolidated Financial Statements show necessary answer workings to calculate the amount of goodwill, non-controlling interest and group retained profit). (25 marks) Briefly explain FOUR (4) scenarios where the parent is exempted from preparing consolidated financial statements under MFRS 10. (10 marks)