Apple Bhd started business many years ago as a family owned private limited company. Over the years, it has successfully acquired smaller companies and grown into a multi-national conglomerate. The following are the Statements of Profit or Loss of Apple Bhdandits subsidiaries: Statements of Profit or Loss for the year ended 31 December 2019 Apple Pear Kiwi RM RM RM million million million Turnover 120 50 45 Cost of Sales -36 -15 -20 Gross profits 84 35 25 Dividend Income 5 4 1. Gain on Disposal of Assets 1 Administrative Expenses -25 -18 -16 Selling & Distribution Expenses -10 -8 -2 Earnings before Interest and Tax 55 13 9. Finance Costs -3 -3 -2 Profits before taxation 53 10 Taxation -13 -3 -2 Net Profits 39 Apple Pear Kiwi RM RM RM million 25.8 million million Retained Profits on 1 January 2018 Ordinary shares (issued at RM1 each) Dividend declared and paid on 20.12.2019 62.7 5.2 100 25 10 1.5 Additional information: 1. On 1 January 2017, Apple Bhd acquired 75% of Pear Bhd's ordinary shares for RM35 million cash. Pear Bhd's retained earnings stood at RM18 million on this date. 2. On 1 January 2018, Apple Bhd acquired 80% of Kiwi Bhd's ordinary shares for RM13 million. Revaluation of Kiwi Bhd's assets on the acquisition date revealed that a vacant land has increased in value compared to its carrying value by RM1.7 million. Kiwi Bhd has not accounted for the increase its books. 3. On 1 March 2019, Apple Bhd entered into a joint venture business with Banana Bhd to set-up anew business where Apple Bhd has a 50% equity interest. As at 31 December 2019, the business incurred accumulated losses of RM1.6 million 4. Apple Bhd disposed a plant to Pear Bhd on 1 February 2019 and recognised a gain of RMO.4 million. The remaining useful life of plant is five (5) years. 5. During the financial year, Pear Bhd sold inventories to Apple Bhd as follows: Date of sale Selling Price (RM Million) 3 Note Apple Bhd has sold all the goods Apple Bhd still kept 20% of the inventory Apple Bhd managed to sell 50% of the inventory 20 March 2019 15 July 2019 10 November 2019 4 2 The group policy is to earn 10% profits on the selling price. 6. At the end of 2019, goodwill from the acquisition of Pear Bhd should be impaired by RM0.3 million 9. The parent company have received dividends from their respective subsidiary. 10. Apple Bhd value non-controlling interest using the partial goodwill method. Required: The Consolidated Statement of Profit or Loss and Other Comprehensive Income and the Consolidated Statement of Changes in Equity of Apple Bhd Group for the year ended 31 December 2019. (25 marks)