The following information is also available: ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

i) ? ? ? High Bhd acquired 80% of the ordinary shares in Middle Bhd on 1 January 2018 for RM530,000,000 when the accumulated profits of Middle Bhd was RM75,000. There have been no changes in Middle Bhd's ordinary shares since then. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??

ii) ? ? At the date of acquisition, Middle's office equipment had a fair value of RM30,000 higher than their book value. This revaluation has not been reflected in the books of Middle. At the date of acquisition, office equipment had an estimated life of 10 years. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??

iii) ? ?High Bhd acquired 30% of the ordinary shares in Low Bhd on 1 January 2019 for RM150,000 when the retained profits of Low Bhd was RM90,000. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??

iv) ? ?During 2019, Middle Bhd sold inventories to High Bhd at invoice value of RM100,000. The markup was 25% and 50% of these goods were still in the inventory of High Bhd at 31st December 2019. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??

v) ? ? ?On 1st December 2019, Low Bhd sold inventories to High Bhd at invoice value of RM50,000. The margin was 10% and 100% of these goods were still in the inventory of High Bhd at 31st December 2019. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??

vi) ? ?On 28 December 2019 Middle Bhd sent a cheque for RM40,000 to High Bhd. The cheque was recorded in the books of High Bhd on 2nd January 2020. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

vii) ?The goodwill arising on consolidation on Middle Bhd had been impaired by RM5,000 up to 31 December 2018, with a further impairment of RM10,000 in the current year ended 31 December 2019. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

viii) On 31 December 2019, the directors of High Bhd proposed a dividend of 20 cents per shares. Middle Bhd and Low Bhd had paid a dividend of 5 cents per share on 3 December 2019. ? ? ? ? ?

ix) ? ?It is group policy to value the non-controlling interest using the proportion of net assets method.

x) ? ? ?All revenues and expenses are expected to accrue evenly throughout the year. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??

Required: ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

a) Prepare a consolidated statement of comprehensive income for High Bhd and its group of companies for the year to 31 December 2019. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??

b) Prepare consolidated statement of financial position for High Bhd and its group of companies as of 31 December 2019. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??

The statements of financial position and comprehensive income High Bhd, Middle Bhd & Statements of Financial Position at 31 December 2019 High Bhd Middle Bhd Low Bhd RM RM RM Assets Non-current assets Land & Buildings Office Equipment Investments Current assets Inventories Trade receivables Inter-company current account Cash at bank Total assets Equity & Liabilities Equity Ordinary shares Retained earnings Current liabilities Trade payables Dividend Proposed Inter-company current account Other liabilities Total Equity and Liabilities 800,000 601,000 700,000 2,101,000 500,000 89,000 50,000 70,000 2,810,000 500,000 804,000 1,304,000 1,006,000 100,000 400,000 2,810,000 400,000 360,000 20,000 780,000 550,000 119,250 40,000 58,200 997,450 300,000 250,000 170,000 211,050 997,450 70,000 55,500 400,000 250,000 216,400 140,150 616,400 390,150 30,000 705,500 90,000 10,000 215,350 705,500 Statements of Comprehensive Income for year to 31 December 2019 High Bhd Revenue Cost of sales Gross profit Operating expenses Profit before tax Dividend Income Tax expense Profit for the year RM 900,000 (380,000) 520,000 (90,000) 430,000 21,750 (52,750) 399,000 Middle Bhd Low Bhd RM RM 200,000 (113,050) 300,000 (182,000) 118,000 (13,200) 104,800 2,000 (30,400) 76,400 86,950 (9,000) 77,950 (15,300) 62,650 Statements of Changes in Retained Earnings for the year ended 31 December 2019 High Bhd Middle Bhd Low Bhd RM RM RM Balance at 1 January 2019 Profit for the year Less: Dividends Balance at 31 December 2019 505,000 399,000 (100,000) 804,000 160,000 76,400 (20,000) 216,400 90,000 62,650 (12,500) 140,150