b) identify the indirect interest in the subsidiary, prepare the consolidated statement of financial position of Pasir Sdn Bhd and its subsidiaries on 31 December 2021.

Statements of Changes in Equity (partial) for the year ended 31 December 2021 Question 4 (25 marks) Statements of Financial Position on 31 December 2021 Pasir Sdn Bhd acquired 80% of the ordinary shares in Bukit Sdn Bhd on 1 January 2018, when Bukit Sdn Bhd's retained earnings were RM3,000,000. On 1 January 2018, Bukit Sdn Bhd acquired 80% of ordinary shares in Gambir Sdn Bhd when Gambir Sdn Bhd's retained earnings were RM1,000,000. The non-controlling interest and goodwill arising on the acquisition of subsidiaries were both calculated using the proportionate method. The financial statements of three companies in a group for the year 2021 are as follows: Statements of profit or loss for the year ended 31 December 2021 There was an impairment loss allowance of RM500,000 written off in 2020 arising from the acquisition of Bukit Sdn Bhd. There is no impairment loss allowance arising from the acquisition of Gambir Sdn Bhd. The group starts to sell to each other in 2021 at a cost plus 25\%. During the year 2021, Bukit Sdn Bhd sold RM2,000,000 worth of goods to Pasir Sdn Bhd. On 31 December 2021, RM1,000,000 of these goods were still in the ending inventory of Pasir Sdn Bhd. Required: (a) Identify the indirect interest in the subsidiary, prepare the consolidated statement of profit or loss of Pasir Sdn Bhd and its subsidiaries for the year ended 31 December 2021. (12 marks) (b) Identify the indirect interest in the subsidiary, prepare the consolidated statement of financial position of Pasir Sdn Bhd and its subsidiaries on 31 December 2021. (13 marks)