Given below are the statements of financial position of Glee and of its subsidiary Smash as at 31 December XB. Consolidated Statement of Financial position 421 11.3 Equity and Liabilities 400,000 ordinary shares 300,000 ordinary shares Preference shares Retained profit Glee RM 450,000 Smash RM 140,000 50,000 360,000 100,000 45,000 8 percent debentures Other liabilities 20.000 660,000 100,000 15,000 620,000 Assets Sundry assets 620,000 Investment in Smash - ordinary shares at cost Investment in preference shares of Smash Investment in RM20,000 8 percent debentures of Smash 235,000 330.000 75,000 20,000 660,000 620,000 a. b. Additional information: Glee acquired 200,000 ordinary shares, 75 percent of the issued preference shares and RM20,000 8 percent debentures in Smash on 1 January x7 when the balance in the retained profit of Smash was RM30,000. On the acquisition date, Smash had an intangible asset that was not recognised. The fair value of the intangible asset was RM30,000 and its economic life was five years. c The inventory in Smash was RM6,000 more than the carrying amount on 1 January x7. This inventory was subsequently sold. d. The fair value of the non-controlling interest on 1 January x7 was RM150,000. Required: Prepare the consolidated statement of financial position of Glee and of its subsidiary Smash as at 3 December 8 where: i. Non-controlling interest is measured at the fair value of the net assets of the subsidiary and goodwill on consolidation (parent's share) was impaired by RM9,000, and li. Non-controlling interest is measured at fair value and full goodwill is impaired by RM12,000. 8116 Given below are the statements of financial position of Glee and of its subsidiary Smash as at 31 December XB. Consolidated Statement of Financial position 421 11.3 Equity and Liabilities 400,000 ordinary shares 300,000 ordinary shares Preference shares Retained profit Glee RM 450,000 Smash RM 140,000 50,000 360,000 100,000 45,000 8 percent debentures Other liabilities 20.000 660,000 100,000 15,000 620,000 Assets Sundry assets 620,000 Investment in Smash - ordinary shares at cost Investment in preference shares of Smash Investment in RM20,000 8 percent debentures of Smash 235,000 330.000 75,000 20,000 660,000 620,000 a. b. Additional information: Glee acquired 200,000 ordinary shares, 75 percent of the issued preference shares and RM20,000 8 percent debentures in Smash on 1 January x7 when the balance in the retained profit of Smash was RM30,000. On the acquisition date, Smash had an intangible asset that was not recognised. The fair value of the intangible asset was RM30,000 and its economic life was five years. c The inventory in Smash was RM6,000 more than the carrying amount on 1 January x7. This inventory was subsequently sold. d. The fair value of the non-controlling interest on 1 January x7 was RM150,000. Required: Prepare the consolidated statement of financial position of Glee and of its subsidiary Smash as at 3 December 8 where: i. Non-controlling interest is measured at the fair value of the net assets of the subsidiary and goodwill on consolidation (parent's share) was impaired by RM9,000, and li. Non-controlling interest is measured at fair value and full goodwill is impaired by RM12,000. 8116