Discuss the accounting treatment in the consolidated financial statements for the following situations:

(a) Kiki acquired 90% of the issued equity shares of Lala. During the current year, Kiki sold inventory costing RM100,000 for RM120,000 to Lala. Half of the inventories still remain in the premises of Lala. (2 marks)

(b) Mickey acquired 90% of the issued equity shares of Minnie. During the current year, Minnie sold inventory costing RM100,000 for RM120,000 to Mickey. Half of the inventories still remain on the premises of Mickey. (2 marks)

(c) Buggs is a manufacturer of rail carriages, holds 60% of the issued equity capital of Bunny, a transport operator. During the current year, Buggs sold inventory costing RM2 million for RM3 million to Bunny. Bunny used the goods from Buggs as noncurrent assets and depreciates them at 20% on cost giving a full years charge in the year of purchase. (4 marks)

(d) Tommy, a manufacturer of heavy machinery was owned 75% share capital of Jerry. In the previous financial year, Tommy sold heavy machinery costing RM2 million for RM2.5 million to Jerry. The economic life of the machinery is 5 years. A full years depreciation is given in the year of purchase. (4 marks)