Financial Reporting 2

1. B Bhd had acquired 80% of S Bhd's ordinary shares in 20x0. At date of acquisition of shares in associate on 1 January 20X0: (a) B acquired 20% of ordinary shares in A for RM20,000. (b) The retained earnings of A were RM22,500 and the general reserve was RM6,000. Statements of financial position of the B Group (parent plus subsidiaries already consolidated) and A (an associate company) as at 31 December 20X2: B Group RM1000 RM'000 RM1000 Non-current assets Property, plant and equipment 172,500 59,250 Goodwill on consolidation 13,400 Investment in A 20,000 Current assets Inventories 132,440 27,000 Trade receivables 151,050 27,000 Current account - A 2,250 Bank 36,200 4,500 Total assets 527,840 117,750 187,500 24,900 145,940 358,340 31,500 389,840 37,500 9,000 37,500 84,000 Equity Equity shares capital General reserve Retained earnings Non-controlling interest Current liabilities Trade payables Taxation Current Account - B Total equity and liabilities 84,000 110,250 27,750 25,500 6,000 2,250 117,750 527,840 Statements of profit or loss of the B Group parent plus subsidiaries already consolidated and A (an associate company) for the year ended 31 December 20X2: B A Group RM'000 RM'000 RM'000 Sales 329,000 75,000 Cost of sales (114,060) (30,000) Gross profit 214,940 45,000 Expenses (107,700) (22,500) Dividends received 1,200 Share of associate's profit Profit before tax 108,440 22,500 Income tax expense (27,750) (6,000) Profit for the period 80,690 16,500 Amount attributable to: Equity holders of the parent company 77,240 Non-controlling interest 3,450 Movement on retained earnings B A Group RM000 RM'000 RM'000 Retained earnings b/f 98,700 27,000 Profit for the period 77,240 16,500 Dividends paid (30,000) (6,000) Retained earnings of 145,940 37,500 Prepare a consolidated statement of profit or loss for the year ended 31 December 20X2 and consolidated statement of financial position as at that date, including the associate company