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Additional information: a. no f. g. h. On 1 January x9, the fair value of Kiki's plant and equipment was RM250 million. Kiki did not

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Additional information: a. no f. g. h. On 1 January x9, the fair value of Kiki's plant and equipment was RM250 million. Kiki did not adjust the financial statements to reect the new value. Both the companies depreciate plant and equipment at 20% using the reducing balance method. The carrying amount of the plant and equipment of RM 160 million as shown in the financial position of Kiki is after providing for year x9 depreciate charge. Kiki did not purchase nor dispose of any plant and equipment during year x9. Kiki has an organically grown house brand that is identiable and separable from its other assets. The fair value of the brand is RM30 million, with indefinite useful life. Provision is made for the second half- year's debenture interest for both the companies. Half of the inventories of Kiki were purchased from Tag. Tag made a profit of 25% on the invoice price on the inventories sold to Kiki, out of which 10% was to cover transport costs. Unrealized profit in the opening inventories of Kiki was RM] million. During the year, Kiki sold to Tag a completed research and development project which was capitalized at RM150 million for RM200 million. The economic life of this research and development is 5 years. The amount shown in the financial position of Tag is net of am0rtization. Trade receivables of Tag include RM25 million due from Kiki. However Kiki remitted RMS million on 31 December x9, which was received by Tag on 3 January x10. Twenty percent of the full goodwill was impaired by 31 December x9. Fair value ofNCI as at 1 January x9 was determined to be RM 105,000. Required: From the infonnation given, prepare the consolidated statement of financial position for the group as at 3 11'1fo9. (Note: Detailed working must be shown) (a) Light Pictures plc is a company which specializes in video production. The company is preparing its financial statements for the financial year ended 30 April 2018. During the financial year ended 30 April 2017 Light Pictures plc was responsible for videoing an important prize awards ceremony for subsequent broadcast on television. Shortly after the ceremony twenty-two people who had been there become seriously ill. They claimed that Light Pictures plc was responsible because a poisonous chemical used in the manufacture of digital video tapes had been found in a soup tureen which had been used during the ceremony. Legal proceedings seeking damages from Light Pictures plc were started during the financial year ended 30 April 2017. Light Pictures plc denied liability and up to the date of authorization of the financial statements for the year ended 30 April 2017 the company's lawyers were confident that the evidence against the company was weakand circumstantial and that it was probable that Light Pictures plc would not be found liable. However, additional evidence emerged during the year ended 30 April 2018 which has caused Light Pictures plc's lawyers to change their advice. They are now of the opinion that it is probable that Light Pictures plc will be found liable. Required: Explain, with reasons, how this matter would be reported in the financial statements for the year ended 30 April 2017 and how it should be reported in the financial statements for the year ended 30 April 2018, as per MFRS137.(b) Stenberg plc is preparing the financial statements for the year ended 30 November 2017. An employee is claiming damages of RM15,000 against Stenberg plc because of the injuries he received while driving on the company's delivery vans in September 2017. The employee is claiming that Stenberg plc was negligent in its maintenance of the van and that the van crashed because of poor maintenance. Stenberg plc's lawyer is of the opinion that the probability of the employee winning the case is 80%. Stenberg plc is making a claim for damages of RM25,000 against a contractor to cover the additional costs of making good faulty work on a contract. The contractor had refused to make good the work because they were too busy with work on other contracts. Stenberg plc's lawyer is of the opinion that the probability of winning this claim is 85%. Required: For each of the two legal claims Stenberg plc is involved in, discuss whether or not a provision should be made in the financial statements for the year ended 30 November 2017, as per MFRS137

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