COMPLEX GROUP

Question 2

The following are the statement of financial position for year ending 31 December 2021

	Faucet Berhad (RM000)	Sink Sdn Bhd (RM000)	Shower Sdn Bhd (RM000)
Non current assets	49,400	10,100	16,500
Investment in ordinary shares Sink Shower	15,000 -	- 13,000	- -
Current assets	9,800	6,900	4,960
Total Assets	74,200	30,000	21,460
Ordinary shares	55,510	20,000	16,900
Retained earnings b/f Profit for the year	7,720 3,850	3,300 1,710	1,200 800
Liabilities	7,120	4,990	2,560
Total equities and liabilities	74,200	30,000	21,460

Additional Information:

1. Faucet acquired 80% of Sinks ordinary shares on 1 January 2020 when the retained earnings of Sink was RM 1.3 million. On 1 January 2021, Sink acquired 80% of ordinary shares in Shower. All consideration transferred have been recorded.

2. On 1 January 2020, one of Sinks non-current asset was estimated to have a higher fair value of RM36,000. On 1 January 2020 also, Showers plant had a fair value of RM120,000 more than the carrying value. Both assets are estimated to have a useful life of 6 years.

3. Sink sold equipment to Shower during the year with the carrying value of RM40,000 at a profit of RM10,000. Useful life is estimated to be 5 years. Sink sold inventories to Faucet during the year with a profit of RM30,000. 50% of the inventories have been sold.

4. The group uses partial goodwill method and straight-line depreciation method to prepare its accounts. Depreciation is adjusted fully in the year of acquisition and none in the year of disposal.

Required:

Prepare the group statement of financial position as at 31 December 2021.