Cash and cash equivalents 2015 2014 RM'000 RM'000 1,870 Total assets 62,500 3,900 58,950 119,510 107,160 EQUITY AND LIABILITIES Equity attributable to owners of the parent Share capital (ordinary shares at RM1 each) Share premium Retained earnings 19,000 13,000 24,910 56,910 18,000 10,000 18,300 46,300 3,600 1,960 Non-controlling interests Non-current liabilities Long-term borrowings Deferred tax 14,500 3,700 16,000 3,200 19,200 18,200 32,750 Current liabilities Payables Interest payable Income tax 33,400 1,300 1,500 5,450 6,100 40,800 39,700 119,510 107,160 Total equity and liabilities Additional information: 1 On 1 January 2015, Heroe acquired 70% of the issued ordinary shares of Ethan, in exchange for a fresh issue of one million of its own ordinary shares at RM1 each (issued at a premium of RM3 each) and RM2,000,000 in cash. Ethan's net assets at the date of acquisition were assessed as having the following fair values: RM'000 4,200 1,650 1,300 50 Property, plant and equipment Inventories Receivables Cash Trade payables Tax (2,000) (200) 5,000 Net assets It is the group's policy to value non-controlling interests at fair value, which is determined as RM1,800,000 at the date of business combination. 2 During the year, Heroe disposed of a non-current asset of property for RM2,250,000. The carrying value of the asset at the date of disposal was RM1,000,000. There were no other disposals of non- current assets. Depreciation of RM7,950,000 was charged against the consolidated profits for the year. Heroe purchased a 30% interest in an associate for cash on 1 December 2012. The associate made profit after tax of RM4,000,000 and paid a dividend of RM1,000,000 out of these profits in the year ended 31 December 2015. 3 Required: Prepare the Consolidated Statement of Cash Flows for the year ended 31 December 2015 for Heroe Group. du .odu Group Consolidated Statement of Profit or Loss for the year ended 31 December 2015 RM'000 Revenue Cost of sales Gross profit Operating expenses Finance cost Gain on disposal of property (Note 2) Share of profit of associate Profit before tax Income tax Profit for the period 105,000 (59,750) 45,250 (26,850) (1,400) 1,250 1,200 19,450 (6,250) 13,200 700 Profit Attributable to: Non-controlling interest Parent 12,500 13,200 Group Statement of Changes in Equity for the year ended 31 December 2015 Share capital Share premium Retained earnings RM'000 RM'000 RM'000 Opening balance 18,000 10,000 18,300 Issue of share capital 1,000 3,000 Profit for period 12,500 Dividends (5,890) Closing balance 19,000 13,000 24,910 Consolidated Statement of Financial Position for the year ended 31 December 2015, with its Comparatives 2015 2014 RM'000 RM'000 ASSETS Non-current assets 50,600 44,050 Property, plant and equipment Goodwill (Note 1) 4,160 Investment in an associate 3,410 3,000 57,010 48,210 Current assets Inventories Receivables 28,750 33,500 27,130 26,300 quivalents at the beginning of the period Cash and cash equivalents at the end of the period XXX XXX Xxx 18.5.3 Preparing the Consolidated Statement of Cash Flows Example 18.1: Consolidated Statement of Cash Flows For the purpose of preparing the Consolidated Statement of Cash Flows, take a look at the financial statements of Heroe Group for the year ended 31 December 2015. Cash and cash equivalents 2015 2014 RM'000 RM'000 1,870 Total assets 62,500 3,900 58,950 119,510 107,160 EQUITY AND LIABILITIES Equity attributable to owners of the parent Share capital (ordinary shares at RM1 each) Share premium Retained earnings 19,000 13,000 24,910 56,910 18,000 10,000 18,300 46,300 3,600 1,960 Non-controlling interests Non-current liabilities Long-term borrowings Deferred tax 14,500 3,700 16,000 3,200 19,200 18,200 32,750 Current liabilities Payables Interest payable Income tax 33,400 1,300 1,500 5,450 6,100 40,800 39,700 119,510 107,160 Total equity and liabilities Additional information: 1 On 1 January 2015, Heroe acquired 70% of the issued ordinary shares of Ethan, in exchange for a fresh issue of one million of its own ordinary shares at RM1 each (issued at a premium of RM3 each) and RM2,000,000 in cash. Ethan's net assets at the date of acquisition were assessed as having the following fair values: RM'000 4,200 1,650 1,300 50 Property, plant and equipment Inventories Receivables Cash Trade payables Tax (2,000) (200) 5,000 Net assets It is the group's policy to value non-controlling interests at fair value, which is determined as RM1,800,000 at the date of business combination. 2 During the year, Heroe disposed of a non-current asset of property for RM2,250,000. The carrying value of the asset at the date of disposal was RM1,000,000. There were no other disposals of non- current assets. Depreciation of RM7,950,000 was charged against the consolidated profits for the year. Heroe purchased a 30% interest in an associate for cash on 1 December 2012. The associate made profit after tax of RM4,000,000 and paid a dividend of RM1,000,000 out of these profits in the year ended 31 December 2015. 3 Required: Prepare the Consolidated Statement of Cash Flows for the year ended 31 December 2015 for Heroe Group. du .odu Group Consolidated Statement of Profit or Loss for the year ended 31 December 2015 RM'000 Revenue Cost of sales Gross profit Operating expenses Finance cost Gain on disposal of property (Note 2) Share of profit of associate Profit before tax Income tax Profit for the period 105,000 (59,750) 45,250 (26,850) (1,400) 1,250 1,200 19,450 (6,250) 13,200 700 Profit Attributable to: Non-controlling interest Parent 12,500 13,200 Group Statement of Changes in Equity for the year ended 31 December 2015 Share capital Share premium Retained earnings RM'000 RM'000 RM'000 Opening balance 18,000 10,000 18,300 Issue of share capital 1,000 3,000 Profit for period 12,500 Dividends (5,890) Closing balance 19,000 13,000 24,910 Consolidated Statement of Financial Position for the year ended 31 December 2015, with its Comparatives 2015 2014 RM'000 RM'000 ASSETS Non-current assets 50,600 44,050 Property, plant and equipment Goodwill (Note 1) 4,160 Investment in an associate 3,410 3,000 57,010 48,210 Current assets Inventories Receivables 28,750 33,500 27,130 26,300 quivalents at the beginning of the period Cash and cash equivalents at the end of the period XXX XXX Xxx 18.5.3 Preparing the Consolidated Statement of Cash Flows Example 18.1: Consolidated Statement of Cash Flows For the purpose of preparing the Consolidated Statement of Cash Flows, take a look at the financial statements of Heroe Group for the year ended 31 December 2015