FAR450/610 TEST 2 Given below are the Statements of Profit or Loss an Statements of Changes in Equity of Jade Bhd, Gris Bhd, Blanco Bhd and Rosado Bhd for the year ended 31 December 2019. Statements of Profit or Loss for the year ended 31 December 2019 Jade Bhd Gris Bhd Blanco Bhd Rosado Bhd RM million RM million RM million RM million Revenue 500 400 270 45 Cost of sales (300) (100) (70) (12) Gross profit 200 300 200 33 Operating expenses (70) (90) (50) (10) Gain On disposal of assets 7 Other income 20 2 6 3 Dividend from investment 25 10 Finance cost (9) (3) Profit before tax 166 222 (2) 157 (1) 25 Taxation (42) (56) (45) ( 4 ) Profit for the year 124 166 112 Statements of Changes in Equity for the year ended 31 December 2019 Jade Bhd Gris Bhd Blanco Bhd Rosado Bhd RM million RM million RM million RM million Retained profit b/f 300 212 194 16 Profit for the year 124 166 112 21 Ordinary dividend (30) (16) (11) Retained profit c/f 394 362 295 37 Additional information: 1 . On 1 January 2018, Jade Bhd acquired 75% of 400 million of the ordinary shares of Gris Bhd when the retained profit of Gris Bhd stood at RM172 million. The goodwill for this acquisition was RM12 million and 10% was impaired in the current year. 2. On 1 January 2019, Jade Bhd acquired 60% of 100 million ordinary shares in Blanco Bhd. A bargain purchase of RM2 million was recorded for this acquisition. 3 . On 1 October 2019, Jade Bhd increased its shareholding in Blanco Bhd by acquiring additional 10% ordinary shares at RM37 million. 4. Jade Bhd acquired 30% of 40 million ordinary shares of Rosado Bhd on 1 January 2019 for RM16 million. Jade Bhd applied equity accounting for the investment since then. 5. In January 2019, Jade Bhd sold motor vehicles with a carrying value of RM5 million to Gris Bhd for RM6 million. On that date, the remaining useful life of the vehicles were 2 years. The vehicles are still in Gris Bhd's books as at 31 December 2019