Given below are the Statements of Profit or Loss and Statements of Changes in Equity of Pear Bh and Apple Bhd for the year ended 31 December 2019. Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019 Pear Bhd Apple Bhd RM million RM million Revenue 250 200 Cost of sales (150) (50) Gross profit 100 150 Operating expenses (70) (90) Gain on disposal of assets 5 Other income 20 2 Dividend from investment 15 10 Finance cost Profit before tax Taxation (42) (18) Profit for the year 19 51 (9) 61 (3) 69 Statement of changes in Equity for the year ended 31 December 2019 (extract) Pear Bhd Apple Bhd RM million RM million Retained profit b/f 30 21 Profit for the year 19 51 Ordinary dividend (3) (6) Retained profit cf 46 66 Additional information: 1. On 1 January 2018, Pear Bhd acquired 150 million of 200 million of the ordinary shares of Apple Bhd when the retained profit of Apple Bhd stood at RM11 million. The goodwill for this acquisition was RM10 million and 10% was impaired in the current year. 2. Details of share capital on 31 December 2019 are as follows: Pear Bhd Apple Bhd RM million RM million OSC 600 200 PSC 40 3. 7. In January 2019, Pear Bhd sold plant with a carrying value of RM7.5 million to Apple Bhd for RM8 million. On that date, the remaining useful life of the plant were 2 years. The plant was still in Apple Bhd's books as at 31 December 2019. In October 2019, Apple Bhd sold goods at an invoice price of RM10 million to Pear Bhd at a profit margin of 12% selling price. Pear Bhd still kept 30% of the goods. 50% of Apple Bhd other income came from Pear Bhd. Pear Bhd treated it as operating expense. On 31 December 2019, a land of Pear Bhd was revalued from RM1.5 million to RM2.8 million. 5. 5. Pear Bhd has recorded dividend paid by Apple Bhd and included in dividend from investment 3. Starting from 1 July 2019, Pear Bhd rented out a special machine to Apple Bhd and charging a monthly rental of RM100,000. The rental income and rental expenses are included in other income and operating expenses in respective books. 3. Before the year end, Pear Bhd and Apple Bhd have declared the preference share dividends of RM8 million and RM2 million respectively. 10. It is the group policy to depreciate all its assets using straight line method, giving full year's depreciation in the year of purchase and none in the year of disposal. 11. Pear Bhd valued the non-controlling interest using the partial goodwill method. Required: a. Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income of Pear Bhd group for the year ended 31 December 2019. . Prepare the Consolidated Statement of Changes in Equity of Pear Bhd group for the year ended 31 December 2019 showing the group retained profit and non-controlling interest only. (Total: 50 marks)
