(a) Rondo Group Berhad makes up its accounts to 31 December each year. The tax rate is 23%. On 1 January 2019, the company had in issue 3.40 million ordinary shares of RM2 each. The company issued 650,000, 10% convertible preference shares of RMI each. Every 50 preference shares can be converted into 100 ordinary shares in year 2034. The profit after tax for year 2019 attributable to group was RM2,160,000. Required: (i) (ii) Calculate the basic earnings per share. Calculate the diluted earnings per share. (4 marks) (4 marks) (b) (c) On 1 January 2019, Rondo Berhad acquired 30% of the ordinary shares of Largo Sdn Bhd for RM218,000. For the year ended 31 December 2019, Largo Sdn Bhd's net profit after tax was RM423,000 and dividend of RM78,600 was paid. Required: Prepare the relevant journal entries to record the investment of Rondo Berhad in Largo Sdn Bhd and the financial results of Largo Sdn Bhd for the year ended 31 December 2019. (8 marks) On 1 January 2019, Sarabande Berhad acquired a 100%-equity interest in an overseas subsidiary, Gigue Limited for a cash consideration of RM418,000. On the date of acquisition, the share capital of Gigue Limited consists of 1,140,000 ordinary shares of DS1 each and the retained profits were DS129,200. Sarabande Berhad is using the closing rate method to translate the financial statements of the foreign subsidiary. The foreign currency rates were as below: 1 January 2019 Average for the year to 31 December 2019 31 December 2019 DS to RMI 4.6350 4.3340 4.1980 The foreign currency rates were as below: DS to RM1 1 January 2019 4.6350 Average for the year to 31 December 2019 4.3340 4.1980 31 December 2019 The following were the financial statements of the foreign company: Gigue Limited Statement of Financial Position as at 31 December 2019 Property, plant & equipment, at cost Less: Accumulated depreciation Current assets Inventories Monetary assets Less: Current liabilities Payables and accruals Net current assets Share capital of RMI/DSI each Pre-acquisition profits Profit for the year DS'000 2,970.00 (445.50) 2,569.60 3,080.00 DS'000 2,524.50 5,649.60 1,980.00 1,980.00 3,669.60 6.194.10 3,300.00 220.00 2.674.10 6.194.10 Sales Gigue Limited Statement of Profit or Loss and Movements in Retained Profits for the year ended 31 December 2019 Cost of goods sold DS'000 DS'000 5,500.00 Opening inventories Purchases 660.00 2,640.00 Less: Closing inventories Gross profit 3,300.00 (2.200.00) (1,100.00) 4,400.00 Less: Expenses Depreciation 148.50 Administration and other expenses - 990.00 (1.138.50) Net profit before taxation 3,261.50 Less: Taxation (587.40) Net profit after taxation 2.674.10 Movements in Retained Profits Profit for the year 2,674.10 Pre-acquisition profit 220.00 2,894.10 Post-acquisition profits c/f Required: (i) (11) purpose. Translate the Statement of Profit or Loss and Other Comprehensive Income and Movements in Retained Profits of Gigue Limited for consolidation (4.5 marks) Translate the Statement of Financial Position of Gigue Limited for consolidation purpose (4.5 marks) [Total: 25 Marks]