Delta Berhad (Delta) has one subsidiary, Omricon Sdn. Bhd (Omricon). The individual draft Statement of Financial Position as at 31 December 2021 is given below. On 30 June 2021, Delta acquired 1.8 million of Omricon's 2 million issued ordinary shares for RM5 million and 40% of 5% debentures of Omricon. Statement of Financial Position as at 31 December 2021 Delta Bhd Omricon Sdn. Bhd RM'000 RM'000 RM'000 RM'000 Non-current Assets Property, plant & equipment 2,848 1,687 Patents 45 Investment in Omricon: Ordinary shares 5,000 5% Debenture 80 Current Assets Inventories 895 225 Trade receivables 1,348 1,251 Bills receivable 20 33 Cash at bank 2,150 4,413 3,301 4,810 Total assets 12,386 6,497 3,000 2,000 Capital and Reserves Ordinary shares Retained earnings at 1 Jan 2021 Profit for the current year 1,830 4,474 1,480 1,200 1,957 Non-current liabilities Long-term borrowings 5% Debentures Current Liabilities 1,080 200 3,000 2.000 Capital and Reserves Ordinary shares Retained earnings at 1 Jan 2021 Profit for the current year 1,830 4,474 1,480 1,200 1,957 1,080 200 606 Non-current liabilities Long-term borrowings 5% Debentures Current Liabilities Trade payables Debenture interest payable Bills payable Taxation payable Total equity and liabilities Number of ordinary shares (in units) 110 10 26 391 43 476 1,125 12,386 537 6,497 3 million 2 million Additional information: 1) On 30 June 2021 the fair values of Omricon's identifiable assets and liabilities were the same as their carrying amounts in the individual financial statements of Omricon with the exception of: The fair values of Omricon's plant were RM1.2 million in excess of its carrying amount at the date of acquisition. As at that date, the plant has a remaining useful life of 8 years. This amount has not been adjusted by Omricon in its books to reflect the fair value. . A contingent liability relating to a pending legal case was disclosed in the notes to the financial statements of Omricon at 30 June 2021. This contingent liability had a fair value of RM10,000 at 30 June 2021. 2) After the acquisition, in August 2021, Omricon sold of its inventories to Delta for RM120,000 at a mark-up of 20% on cost. Three-quarters of these inventories have been sold by Delta to third party during the year. 3) The directors of Delta and Omricon had declared dividends of RM20,000 and RM10,000 respectively for the ordinary shareholders on 20 December 2021. Delta and Omricon have not recorded the dividend payable to its shareholders. Delta has also not recognized its share of the ordinary dividend and debenture interest receivables from Omricon. 4) Bills payable of Omricon of RM13,000 were drawn in favor of Delta. Delta had discounted RM5,000 of these bills. 5) On 1 July 2021, Delta sold a piece of freehold land costing RM150,000 for RM190,000 to Omricon. The land is still with Omricon at year-end. 6) Omricon had purchased a significant amount of new production equipment on 1 October 2021. The cost before trade discount of this equipment was RM480,000. The trade discount of RM80,000 was taken to the statement of profit & loss as an income. Depreciation is charged using the straight-line method over a four-years period. Omricon have decided to provide a full year depreciation in the year the equipment was purchased. 5) On 1 July 2021, Delta sold a piece of freehold land costing RM150,000 for RM190,000 to Omricon. The land is still with Omricon at year-end. 6) Omricon had purchased a significant amount of new production equipment on 1 October 2021. The cost before trade discount of this equipment was RM480,000. The trade discount of RM80,000 was taken to the statement of profit & loss as an income. Depreciation is charged using the straight-line method over a four-years period. Omricon have decided to provide a full year depreciation in the year the equipment was purchased. 7) The group's policy was to value non-controlling interests at a proportion of the fair value of the net assets of the subsidiary at the acquisition date. 8) Omricon's profits are deemed to accrue evenly throughout the financial year. No new shares have been issued by Omricon since the date of acquisition. 9) At the end of the current year, an impairment loss of 10% with respect to the goodwill on acquisition of Omricon was to be provided. 10) Ignore taxation effect. (b) Prepare the Consolidated Statement of Financial Position of the Delta Bhd group as at 31 December 2021. (21 marks) (All relevant supporting workings have to be shown. Prepare schedule showing the group retained profits and the non-controlling interest). Delta Berhad (Delta) has one subsidiary, Omricon Sdn. Bhd (Omricon). The individual draft Statement of Financial Position as at 31 December 2021 is given below. On 30 June 2021, Delta acquired 1.8 million of Omricon's 2 million issued ordinary shares for RM5 million and 40% of 5% debentures of Omricon. Statement of Financial Position as at 31 December 2021 Delta Bhd Omricon Sdn. Bhd RM'000 RM'000 RM'000 RM'000 Non-current Assets Property, plant & equipment 2,848 1,687 Patents 45 Investment in Omricon: Ordinary shares 5,000 5% Debenture 80 Current Assets Inventories 895 225 Trade receivables 1,348 1,251 Bills receivable 20 33 Cash at bank 2,150 4,413 3,301 4,810 Total assets 12,386 6,497 3,000 2,000 Capital and Reserves Ordinary shares Retained earnings at 1 Jan 2021 Profit for the current year 1,830 4,474 1,480 1,200 1,957 Non-current liabilities Long-term borrowings 5% Debentures Current Liabilities 1,080 200 3,000 2.000 Capital and Reserves Ordinary shares Retained earnings at 1 Jan 2021 Profit for the current year 1,830 4,474 1,480 1,200 1,957 1,080 200 606 Non-current liabilities Long-term borrowings 5% Debentures Current Liabilities Trade payables Debenture interest payable Bills payable Taxation payable Total equity and liabilities Number of ordinary shares (in units) 110 10 26 391 43 476 1,125 12,386 537 6,497 3 million 2 million Additional information: 1) On 30 June 2021 the fair values of Omricon's identifiable assets and liabilities were the same as their carrying amounts in the individual financial statements of Omricon with the exception of: The fair values of Omricon's plant were RM1.2 million in excess of its carrying amount at the date of acquisition. As at that date, the plant has a remaining useful life of 8 years. This amount has not been adjusted by Omricon in its books to reflect the fair value. . A contingent liability relating to a pending legal case was disclosed in the notes to the financial statements of Omricon at 30 June 2021. This contingent liability had a fair value of RM10,000 at 30 June 2021. 2) After the acquisition, in August 2021, Omricon sold of its inventories to Delta for RM120,000 at a mark-up of 20% on cost. Three-quarters of these inventories have been sold by Delta to third party during the year. 3) The directors of Delta and Omricon had declared dividends of RM20,000 and RM10,000 respectively for the ordinary shareholders on 20 December 2021. Delta and Omricon have not recorded the dividend payable to its shareholders. Delta has also not recognized its share of the ordinary dividend and debenture interest receivables from Omricon. 4) Bills payable of Omricon of RM13,000 were drawn in favor of Delta. Delta had discounted RM5,000 of these bills. 5) On 1 July 2021, Delta sold a piece of freehold land costing RM150,000 for RM190,000 to Omricon. The land is still with Omricon at year-end. 6) Omricon had purchased a significant amount of new production equipment on 1 October 2021. The cost before trade discount of this equipment was RM480,000. The trade discount of RM80,000 was taken to the statement of profit & loss as an income. Depreciation is charged using the straight-line method over a four-years period. Omricon have decided to provide a full year depreciation in the year the equipment was purchased. 5) On 1 July 2021, Delta sold a piece of freehold land costing RM150,000 for RM190,000 to Omricon. The land is still with Omricon at year-end. 6) Omricon had purchased a significant amount of new production equipment on 1 October 2021. The cost before trade discount of this equipment was RM480,000. The trade discount of RM80,000 was taken to the statement of profit & loss as an income. Depreciation is charged using the straight-line method over a four-years period. Omricon have decided to provide a full year depreciation in the year the equipment was purchased. 7) The group's policy was to value non-controlling interests at a proportion of the fair value of the net assets of the subsidiary at the acquisition date. 8) Omricon's profits are deemed to accrue evenly throughout the financial year. No new shares have been issued by Omricon since the date of acquisition. 9) At the end of the current year, an impairment loss of 10% with respect to the goodwill on acquisition of Omricon was to be provided. 10) Ignore taxation effect. (b) Prepare the Consolidated Statement of Financial Position of the Delta Bhd group as at 31 December 2021. (21 marks) (All relevant supporting workings have to be shown. Prepare schedule showing the group retained profits and the non-controlling interest)