Background of Lagun Bhd Lagun Bhd is a public limited company, established in Malaysia, which financial year end 31 December. The share capital of Lagun Bhd comprises of 500,000 ordinary shares. Lagun Bhd has investments in a number of entities. Currently, the value of the share of Lagun Bhd is RM3.50 per share. Acquisition of Bermuda Bhd Bermuda Bhd was established in Malaysia on 1 July 2018. The share capital of the company comprises of 100,000 ordinary shares. On 1 January 2019, Lagun Bhd acquired 60,000 equity interest in Bermuda Bhd for a cash consideration of RM90,000. On the acquisition date, the net assets of Bermuda is deemed to have a fair value of RM130,000.

a. Does Lagun Bhd has control on Bermuda Bhd on 1 July 2018? Explain.

b. Does Lagun Bhd has control on Bermuda Bhd on 1 January 2019? Explain.

c. Does Lagun Bhd become the parent to Bermuda Bhd on 1 July 2018? Explain.

d. Does Lagun Bhd become the parent to Bermuda Bhd on 1 January 2019? Explain.

e. Does Bermuda Bhd become the subsidiary company to Lagun Bhd on 1 July 2018? Explain.

f. Does Bermuda Bhd become the subsidiary company to Lagun Bhd on 1 January 2019? Explain.

g. What is the equity interest of the minority shareholder of Bermuda Bhd on 1 January 2019?

h. Explain about the minority shareholder of Bermuda Bhd.

i. Calculate the goodwill obtained from the acquisition.

j. In you opinion, why does Lagun Bhd acquire Bermuda Bhd.?