hi, l need answers for these questions, urgently, please thanks

question no.5, 8b, 10, 11 & 12

Introduction o financial statements are prepared to show the financial position and performance of the parent and its subsidiaries as a single economic unit. A complete set of financial statements is made up of five components, namely Statement of Comprehensive Income, Statement of Changes in Equity Statement of Financial Positions, Statement of Cash Flows, and Notes to Financial Statements. Transactions involving all companies within the same group are presented as a single entity Information The Lion Group carries on business as distributor of building materials into the country. Lion was incorporated in 2011 to distribute building materials. It diversified its activities during 2013 to include the import and distribution of water meter, and expanded its operations by the acquisition of shares in Leo in 2015 and in Tiger in 2017 Accounts for all companies are mede up to 31 December 45.600 The draft income statements for Lion Lo Tiger and Cat for the year ended 31 December 2019 are as follows. Lion Tiger Cat RM000 RMODO RM 000 RM'000 Revenue 24,700 22.800 510 Cost of Sales (18,050) (5.463) 15,320) (310) Gross profit 27.5.SO 19,237 17,480 Distribution costs 13.325) 12,137) (1.900) Administrative expenses (3.475) (050) (1,900) (10) Finance costs Profit before tax 20.425 16.150 13.6.8D 220 Income tax expense (8,300) 15,390) (4.241) (120) Profit for the year 12.125 9,439 100 (70) 10.780 The draft statements of financial position as at 31 December 2019 are as follows:- 35,483 24,273 13,063 270 Non-current assets Property, plant and equipment (NBV) Investments Shares in Leo Shares in Tiger 6,650 3,800 Current assets Total Assets 1,568 43,701 9,025 37.098 8.883 21.946 Equity RM1 ordinary shares Retained earnings 8.000 22,638 3.000 24.075 2,000 19,899 13,063 10.023 48 Current liabilities Total Equity and Liabilities 43,701 37,098 21.946 The wing m on is available relatnolo LionLeo Tiger and Cat Jan 2015, Lion signed the purchasingreement to acquire 2.700,000 of RM ordinary shares in Leo for RM 650.000 ml which date there was a credit balance on the related eanings of Leo of RM1.425.000. No shares have been Ind by Led Lion acquired its interest On January 2017 L e d 1.600.000 of RM ordinary shares in Tier for RM 300.000 at which date there was a credit balance on the retained earnings of ORMS 000 Nowhares have been issued by Tiger since lo acquired its T Only 2019, Lo r d 40.000 shares in Colby way of a share exchange of shares of each cured share in Cat The share market value of Lion's shares at the date of the share exchange was RM 50 Lion has not yet recorded the acquisition of the investment in Cat During 2010. Tiger had made intragroup sales to Loo of RM10,000 making a pront of 25on cost and RM75,000 of these goods were in inventories of Leo at 31 December 2019 During 2010, Leo had made intragroup sales to Lion of RM200,000 making a profit of 20% on cost and RM90,000 of these goods were in inventories of Lion at 31 December 2019, () On 1 November 2019 Lion sold warehouse equipment to Leo for RM240,000 from Inventories. Leo has included this equipment in its property, plant and equipment. The equipment had been purchased on credit by Lion for RM200,000 in October 2019 and this amount is included in its current liabilities as at 31 December 2019 (vii) Les charges depreciation on its warehouse equipment at 20% on cost is company policy to charge a full year's depreciation in the year of acquisition to be included in the cost of sales An impairment test conducted at the year end did not reveal any impairment (1) It is the group's policy to value the non-controlling interest at fair value at the date of acquisition. The fair value of the non controlling interests in Leo on 1 January 2015 was RM500,000. The fair value of the 28% non-controlling interest in Tiger on 1 January 2017 was RM900,000 All trading profits and losses are deemed to accrue evenly throughout the year. ) You are required to prepare Consolidated Statement of Comprehensive Income and Statement of Financial Position for Lion Group using the eleven (11) steps as set out below. Marks for each correct answer are indicated at the end of each question Question 5 Calculate the goodwill for Lion Berhad. [8 ma [You may use the format as below to present your answer Subsidiary GroupNCI Consideration transferred / FV NCI XX XX Share of net assets acquired: Share capital Retained earnings at acquisition Fair value adjustment 3000 (XX) 27XX) ANOS(XX) Group / NCI share (%) Goodwill 1907. XX XX Olo XX XX Eliminate in full Intragroup assets and liabilities; offset the carrying amount of the parent's investment in each subsidiary and parent's portion of equity of each subsidiary. Also, recognize non-controlling interest and goodwill. Question 10 Using format provided below and figures from Step 7. you are required to:- (a) Eliminate the carrying amount of the parent's investment in each subsidiary, and the parent's portion of equity of each subsidiary and (D) Recognise non-controlling interest and goodwill in the Statement of Financial Position [8 marks] Combine RM 000 Add RM 000 Eliminate RM'000 Adjusted RM 000 79, 819 8 40 79,787 Non-current assets Property, plant and equipment (NBV) Investments Shares in Leo Shares in Tiger Goodwill Current assets 6650 3800 4.094.50 11,09H..SO combine Add climimte Adjusted, Total Assets Equity RM1 ordinary shares Retained earnings 5000 8000 13,000 66,611 Current liabilities 23, 134 123, 134 2,384.30 12,384.30 Non controlling interest in Tiger Non controlling interest in Cat Total Equity and Liabilities Step Eliminate in full intragroup income and expenses relating to transactions between entities of the group. Question 11 Using format provided below and figures from Step 7, you are required to eliminate in full intragroup income and expenses relating to transactions between entities of the group. [8 marks] Eliminate Add RM'000 RM'000 (480X(260(240) (740)(240)(8) 10+15+? Revenue Cost of Sales Gross profit Distribution costs Administrative expenses Finance costs Profit before tax Income tax expense Profit for the year Combine RM'000 93.100 28,833 64, 267 7362 6 325 325 50 255 17 931 32, 324 Adjusted RM'000 92, 120 97 915 64, 205 7 362 6 395 305 11.931 Profit attributable to Owners of the parent Non Controlling Interest 28, 548 Leo(10,760 - 15+ 8x 10% = 1075.30 y now calcuble for iger Consolidate associate in Statement of Financial Position using the below method: Every line of asset and liability - 100% of parent One line investment - percentage of interest in associate Consolidate associate in Statement of Comprehensive Income using the below method: Every line of income and expenditure - 100% of parent company One line share of gross profit, interest, taxation - percentage of interest in associate Question 12 Using format provided below and figures from Slap 8 & Slep 9. you are required to consolidate associate in Statement of Financial Positions and Statement of Comprehensive Income. [B marks] Lion Group Statements of Financial Position for Year Ended 31 December 2013 Combine Eliminate Add Consolidate RM'000 RM000 RM'O0ORMOOD Non-current assets Property, plant and equipment (NBV) Investment in Cal Goodwill Current assets Total Assets Equity RM1 ordinary shares Retained earnings Current liabilities Non controlling interest in Tiger Non controlling interest in Cat Total Equity and Liabilities Lion Group Statements of Comprehensive Income for Year Ended 31 December 2019 Combine Eliminate Add Consolidate RM'000 RM'000 RM000 RM 000 Revenue Cost of Sales Gross profit Distribution costs Administrative expenses Finance costs Profit before tax Share of protein associate Income tax expense Share of tax expenses in associate Profit for the year Profit attributable to Owners of the parent Non Controlling Interest Introduction Group financial statements are prepared to show the financial position and performance of the parent and its subsidiaries as a single economic unit. A complete set of financial statements is made up of five components namely Statement of Comprehensive Income Statement of Changes in Equity Statement of Financial Positions. Statement of Cash Flows, and Notes to Financial Statement Transactions involving al companies within the same group are presented as a single entity Information The Lion Group carries on business as a distributor of building materials into the country. Lion was incorporated in 2011 to distribute building materials. It diversified its activities during 2013 to include the import and distribution of water meter, and expanded its operations by the acquisition of shares in Led in 2015 and in Tiger in 2017 Accounts for all companies are made up to 31 December Lion 610 The draft income statements for Lion, Leo, Tiger and Cat for the year ended 31 December 2019 are as follows. Leo Tiger RM 000 RM 000 RM 000 RM000 Revenue 45.600 24.700 22.800 Cost of Sales 15.463) 13101 Gross profit 27550 19.237 17,480 Distribution costs (3,325) (2.137) (1.900) Administrative expenses (3,475) (950) (1.900) (10) Finance costs (325) Profit before tax 20.425 16.150 137680 Income tax expense (8.300) 15.390) 14241) (120) Proht for the year 16.760 (70) 1211 The dratt statements of financial position as at 31 December 2019 are as follows: Non-current assets Property, plant and equipment (NBV) 35.483 24.273 13,063 Shares in Leo Shares in Tiger 6.650 3.800 Current assets Total Assets 1.568 9.025 37.098 Equity RM ondary shares Renderings 3.000 8000 22.638 24.075 2.000 1998 13.063 10.023 Current abilities Total Equity and Liabilities 43.701 37 098 21.946 The following information is available relating to Lion, Leo, Tiger and Cat On 1 January 2015, Lion signed the purchase agreement to acquire 2.700,000 of RMI ordinary shares in Leo for RM 650.000 at which date there was a credit balance on the retained eamings of Leg of RM1.425 000. No shares have been issued by Leo since Lion acquired its interest On 1 January 2017, Leo acquired 1,600,000 of RM1 Ordinary shares in Tiger for RM3.800.000 at which date there was a credit balance on the retained earnings of Tiger of RM950,000. No shares have been issued by Tiger since Leo acquired its interest () On 1 July 2019, Lion acquired 40 000 shares in Cat by way of a share exchange of two shares in Lion for each acquired share in Cat. The share market value of Lion's shares at the date of this share exchange was RM2 50 Lion has not yet recorded the acquisition of the investment in Cat. IM During 2019, Tiger had made intragroup sales to Leo of 47 profit of 25% on cost and RM75,000 of these goods were in in . 31 December 2019 kinga of Leo at During 2019, Lea had made intragroup sales to Lion of RM260.000 making a profit of 20% on cost and RM90,000 of these goods were in inventories of Lion at 31 December 2019. On 1 November 2019 Lion sold warehouse equipment to Leo for RM240.000 from inventories. Leo has included this equipment in its property, plant and equipment The equipment had been purchased on credit by Lion for RM200,000 in October 2019 and this amount is included in its current liabilities as at 31 December 2019 (M) Loo charges depreciation on its warehouse equipment at 20% on costs company policy to charge a full year's depreciation in the year of acquisition to be included in the cost al sales. (vii) An impairment test conducted at the year and did not reveal any impairment losses, x) It is the group's policy to value the non-controlling interest a ir value at the date of acquisition. The fair value of the non controlling interests in Leo on 1 January 2015 was RM500,000. The fair value of the 28% non-controlling interest in Tiger on 1 January 2017 was RM900.000 10 All trading profits and losses are deemed to accrue evenly throughout the year. You are required to prepare Consolidated Statement of Comprehensive Income and Statement of Financial Position for Lion Group using the eleven (11) steps as set out below. Marks for each correct answer are indicated at the end of each question Identify the group structure-le, which company is the subsidiary? Which company is the associate? How much influence does the parent have in the associate? Determine the date of acquisition Question 1 (a) () Define the meaning of a subsidiary and explain how control is achieved. (4 marks Define the meaning of an associate and significant influence. [4 marks! Question 2 a) Among the four (4) companies namely Lion Berhad, Leo Berhad, Tiger Berhad and Cat Berhad, which company is the parent? Which company is the subsidiary and which company is the associate? (6 marks b) Determine the date of acquisition of subsidiaryfies) / associate(s). 12 marks] Please support your answer with MFRSs, as marks will be allocated for Sep Identify the net assets of the subsidiary at the date of acquisition Question 3 (a) Identify the net assets of the subsidiary at the date of acquisition 14 marks! (b) Define net assets (4 marks! You may use the format as below to present your answer Calculate the goodwill for the subsidiary. Question 4 MERS 3 Business Combination permits goodwill to be measured on a basis or partial goodwill method. goodwill (a) Explain goodwill with example, 12 marks] (b) What is the difference between recognising full goodwill and partial goodwill? (4 marks) (c) Negative goodwill is also known as bargain purchase Explain the accounting treatment for bargain purchase in accordance to MERS 3, Business Combination 12 marks Question 5 Calculate the goodwill for Lion Berhad. 18 marks You may use the format as below to present your answer Subsidiary Group Consideration transferred / FV NCI NCI Share of net assets acquired: Share capital Retained earnings scquisition Fair value adjustment 3386 8888 Group/NCI share (0%) Goodwill Calculate the reserves for the parent company at the consolidation date. Question 6 Calculate the reserves for Lion Group at the consolidation date. (8 marks Calculate the investment in the associate Question 7 (a) Explain the accounting method used for associate (4 marks (b) Calculate the investment in the associate for Lion Group 14 marks ( 5 ) Calculate the non-controlling interest Question & (a) (b) Explain non-controlling interest. 12 marks] Calculate the non-controlling interest to be presented in the consolidated financial statements [6 marks) Combine items like assets, liabilities, equity, income, expenses and cash flows of the parent with those of its subsidiaries Question 9 Using format provided below, combine items like assets, liabilities, equity, income, expenses and cash flows for Lion Berhad and its subsidiaries [12 marks] Statements of Comprehensive Income for Year Ended 31 December 2019 Leo Tiger Combine Berhad Berhad Berhad RM000 RM200 RM000 RM 000 Revenue Cost of Sales Lion Administrative expenses Finance costs Profit before tax Income tax expense Profit for the year Statement of Financial Position for Year Ended 31 December 2019 Lion Berhad Leo Berhad Tiger Combine Non-current assets Berhad RM 000 RM 000 RM000 RM OOO Property, plant and equipment (NBV) Shares in Led Shares in liger Current assets Total Assets Equity RM1 ordinary shares Retained earnings Current labtes Total Equity and Liabilities Eliminate in full intragroup assets and liabilities offset the carrying amount of the parent's investment in each subsidiary and parent's portion of equity of each subsidiary. Also, recognize non-controlling interest and goodwill Question 10 Using format provided below and figures from Step 7. you are required to (a) Eliminate the carrying amount of the parent's investment in each subsidiary, and the parent's portion of equity of each subsidiary, and (b) Recognise non-controlling interest and goodwil in the Statement of Financial Position 18 mars! Combine RMPOOO Add Eliminate Adjusted RM1000RMOOORM 000 Non-current assets Property, plant and equipment (NBV) Investments Shares in Leo Shares in Tiger Goodwil Current assets Total Assets Equity RM1 ordinary shares Retained earnings Current is Non controlling interest in Tige Non controlling interest in Cat Total Equity and Liabilities Eliminate in full intragroup income and expenses relating to transactions between entities of the group. Question 11 Using format provided below and figures from Step 7. you are required to eliminate in tullintragroup income and expenses relating to transactions between entities of the group 18 marks! Combine RM000 Eliminate RM 000 Add RM000 Adjusted RM000 Ravenue Cost of Sales Gross profit Distribution costs Administrative expenses Finance costs Profit before tax income tax expense Profit for the year Profit attributable to Owners of the parent Non Controlling Interest Consolidate associate in Statement of Financial Position using the below method Every line of asset and ability - 100% of parent One in investment-percentage of interest in associate Consolidate associate in Statement of Comprehensive Income using the below method Every line of income and expenditure -100% of parent company One line share of gross profit, interest, taxation - percentage of interest in associate Question 12 Using format provided below and figures from Step 8 & Step you are required to consolidate associate in Statement of Financial Positions and Statement of Comprehensive Income 18 marks] Lion Group Statements of Financial Position for Year Ended 31 December 2019 Combine Eliminate Add Consolidate RW 000 RM 000 RM 000 RM 000 Non current assets Property plant and equipment NEM investment in car Goodwill Current assets Total Assets Equity RM1 ordinary shares Current liabilities Non controling interest in Tiger Non controling interest in Cat Total Equity and Liabilities Lion Group Statements of Comprehensive Income for Year Ended 31 December 2010 Combine Eliminate Add Consolidate RM000 RM"000R M'000 Revenue Com of Sales Gross pront Distrbution costs Administrative expenses Profit before Share of profit in associa Shine of passina LILI Profattbutable to Non Controlling interes JEND OF QUESTION PAPERI Introduction o financial statements are prepared to show the financial position and performance of the parent and its subsidiaries as a single economic unit. A complete set of financial statements is made up of five components, namely Statement of Comprehensive Income, Statement of Changes in Equity Statement of Financial Positions, Statement of Cash Flows, and Notes to Financial Statements. Transactions involving all companies within the same group are presented as a single entity Information The Lion Group carries on business as distributor of building materials into the country. Lion was incorporated in 2011 to distribute building materials. It diversified its activities during 2013 to include the import and distribution of water meter, and expanded its operations by the acquisition of shares in Leo in 2015 and in Tiger in 2017 Accounts for all companies are mede up to 31 December 45.600 The draft income statements for Lion Lo Tiger and Cat for the year ended 31 December 2019 are as follows. Lion Tiger Cat RM000 RMODO RM 000 RM'000 Revenue 24,700 22.800 510 Cost of Sales (18,050) (5.463) 15,320) (310) Gross profit 27.5.SO 19,237 17,480 Distribution costs 13.325) 12,137) (1.900) Administrative expenses (3.475) (050) (1,900) (10) Finance costs Profit before tax 20.425 16.150 13.6.8D 220 Income tax expense (8,300) 15,390) (4.241) (120) Profit for the year 12.125 9,439 100 (70) 10.780 The draft statements of financial position as at 31 December 2019 are as follows:- 35,483 24,273 13,063 270 Non-current assets Property, plant and equipment (NBV) Investments Shares in Leo Shares in Tiger 6,650 3,800 Current assets Total Assets 1,568 43,701 9,025 37.098 8.883 21.946 Equity RM1 ordinary shares Retained earnings 8.000 22,638 3.000 24.075 2,000 19,899 13,063 10.023 48 Current liabilities Total Equity and Liabilities 43,701 37,098 21.946 The wing m on is available relatnolo LionLeo Tiger and Cat Jan 2015, Lion signed the purchasingreement to acquire 2.700,000 of RM ordinary shares in Leo for RM 650.000 ml which date there was a credit balance on the related eanings of Leo of RM1.425.000. No shares have been Ind by Led Lion acquired its interest On January 2017 L e d 1.600.000 of RM ordinary shares in Tier for RM 300.000 at which date there was a credit balance on the retained earnings of ORMS 000 Nowhares have been issued by Tiger since lo acquired its T Only 2019, Lo r d 40.000 shares in Colby way of a share exchange of shares of each cured share in Cat The share market value of Lion's shares at the date of the share exchange was RM 50 Lion has not yet recorded the acquisition of the investment in Cat During 2010. Tiger had made intragroup sales to Loo of RM10,000 making a pront of 25on cost and RM75,000 of these goods were in inventories of Leo at 31 December 2019 During 2010, Leo had made intragroup sales to Lion of RM200,000 making a profit of 20% on cost and RM90,000 of these goods were in inventories of Lion at 31 December 2019, () On 1 November 2019 Lion sold warehouse equipment to Leo for RM240,000 from Inventories. Leo has included this equipment in its property, plant and equipment. The equipment had been purchased on credit by Lion for RM200,000 in October 2019 and this amount is included in its current liabilities as at 31 December 2019 (vii) Les charges depreciation on its warehouse equipment at 20% on cost is company policy to charge a full year's depreciation in the year of acquisition to be included in the cost of sales An impairment test conducted at the year end did not reveal any impairment (1) It is the group's policy to value the non-controlling interest at fair value at the date of acquisition. The fair value of the non controlling interests in Leo on 1 January 2015 was RM500,000. The fair value of the 28% non-controlling interest in Tiger on 1 January 2017 was RM900,000 All trading profits and losses are deemed to accrue evenly throughout the year. ) You are required to prepare Consolidated Statement of Comprehensive Income and Statement of Financial Position for Lion Group using the eleven (11) steps as set out below. Marks for each correct answer are indicated at the end of each question Question 5 Calculate the goodwill for Lion Berhad. [8 ma [You may use the format as below to present your answer Subsidiary GroupNCI Consideration transferred / FV NCI XX XX Share of net assets acquired: Share capital Retained earnings at acquisition Fair value adjustment 3000 (XX) 27XX) ANOS(XX) Group / NCI share (%) Goodwill 1907. XX XX Olo XX XX Eliminate in full Intragroup assets and liabilities; offset the carrying amount of the parent's investment in each subsidiary and parent's portion of equity of each subsidiary. Also, recognize non-controlling interest and goodwill. Question 10 Using format provided below and figures from Step 7. you are required to:- (a) Eliminate the carrying amount of the parent's investment in each subsidiary, and the parent's portion of equity of each subsidiary and (D) Recognise non-controlling interest and goodwill in the Statement of Financial Position [8 marks] Combine RM 000 Add RM 000 Eliminate RM'000 Adjusted RM 000 79, 819 8 40 79,787 Non-current assets Property, plant and equipment (NBV) Investments Shares in Leo Shares in Tiger Goodwill Current assets 6650 3800 4.094.50 11,09H..SO combine Add climimte Adjusted, Total Assets Equity RM1 ordinary shares Retained earnings 5000 8000 13,000 66,611 Current liabilities 23, 134 123, 134 2,384.30 12,384.30 Non controlling interest in Tiger Non controlling interest in Cat Total Equity and Liabilities Step Eliminate in full intragroup income and expenses relating to transactions between entities of the group. Question 11 Using format provided below and figures from Step 7, you are required to eliminate in full intragroup income and expenses relating to transactions between entities of the group. [8 marks] Eliminate Add RM'000 RM'000 (480X(260(240) (740)(240)(8) 10+15+? Revenue Cost of Sales Gross profit Distribution costs Administrative expenses Finance costs Profit before tax Income tax expense Profit for the year Combine RM'000 93.100 28,833 64, 267 7362 6 325 325 50 255 17 931 32, 324 Adjusted RM'000 92, 120 97 915 64, 205 7 362 6 395 305 11.931 Profit attributable to Owners of the parent Non Controlling Interest 28, 548 Leo(10,760 - 15+ 8x 10% = 1075.30 y now calcuble for iger Consolidate associate in Statement of Financial Position using the below method: Every line of asset and liability - 100% of parent One line investment - percentage of interest in associate Consolidate associate in Statement of Comprehensive Income using the below method: Every line of income and expenditure - 100% of parent company One line share of gross profit, interest, taxation - percentage of interest in associate Question 12 Using format provided below and figures from Slap 8 & Slep 9. you are required to consolidate associate in Statement of Financial Positions and Statement of Comprehensive Income. [B marks] Lion Group Statements of Financial Position for Year Ended 31 December 2013 Combine Eliminate Add Consolidate RM'000 RM000 RM'O0ORMOOD Non-current assets Property, plant and equipment (NBV) Investment in Cal Goodwill Current assets Total Assets Equity RM1 ordinary shares Retained earnings Current liabilities Non controlling interest in Tiger Non controlling interest in Cat Total Equity and Liabilities Lion Group Statements of Comprehensive Income for Year Ended 31 December 2019 Combine Eliminate Add Consolidate RM'000 RM'000 RM000 RM 000 Revenue Cost of Sales Gross profit Distribution costs Administrative expenses Finance costs Profit before tax Share of protein associate Income tax expense Share of tax expenses in associate Profit for the year Profit attributable to Owners of the parent Non Controlling Interest Introduction Group financial statements are prepared to show the financial position and performance of the parent and its subsidiaries as a single economic unit. A complete set of financial statements is made up of five components namely Statement of Comprehensive Income Statement of Changes in Equity Statement of Financial Positions. Statement of Cash Flows, and Notes to Financial Statement Transactions involving al companies within the same group are presented as a single entity Information The Lion Group carries on business as a distributor of building materials into the country. Lion was incorporated in 2011 to distribute building materials. It diversified its activities during 2013 to include the import and distribution of water meter, and expanded its operations by the acquisition of shares in Led in 2015 and in Tiger in 2017 Accounts for all companies are made up to 31 December Lion 610 The draft income statements for Lion, Leo, Tiger and Cat for the year ended 31 December 2019 are as follows. Leo Tiger RM 000 RM 000 RM 000 RM000 Revenue 45.600 24.700 22.800 Cost of Sales 15.463) 13101 Gross profit 27550 19.237 17,480 Distribution costs (3,325) (2.137) (1.900) Administrative expenses (3,475) (950) (1.900) (10) Finance costs (325) Profit before tax 20.425 16.150 137680 Income tax expense (8.300) 15.390) 14241) (120) Proht for the year 16.760 (70) 1211 The dratt statements of financial position as at 31 December 2019 are as follows: Non-current assets Property, plant and equipment (NBV) 35.483 24.273 13,063 Shares in Leo Shares in Tiger 6.650 3.800 Current assets Total Assets 1.568 9.025 37.098 Equity RM ondary shares Renderings 3.000 8000 22.638 24.075 2.000 1998 13.063 10.023 Current abilities Total Equity and Liabilities 43.701 37 098 21.946 The following information is available relating to Lion, Leo, Tiger and Cat On 1 January 2015, Lion signed the purchase agreement to acquire 2.700,000 of RMI ordinary shares in Leo for RM 650.000 at which date there was a credit balance on the retained eamings of Leg of RM1.425 000. No shares have been issued by Leo since Lion acquired its interest On 1 January 2017, Leo acquired 1,600,000 of RM1 Ordinary shares in Tiger for RM3.800.000 at which date there was a credit balance on the retained earnings of Tiger of RM950,000. No shares have been issued by Tiger since Leo acquired its interest () On 1 July 2019, Lion acquired 40 000 shares in Cat by way of a share exchange of two shares in Lion for each acquired share in Cat. The share market value of Lion's shares at the date of this share exchange was RM2 50 Lion has not yet recorded the acquisition of the investment in Cat. IM During 2019, Tiger had made intragroup sales to Leo of 47 profit of 25% on cost and RM75,000 of these goods were in in . 31 December 2019 kinga of Leo at During 2019, Lea had made intragroup sales to Lion of RM260.000 making a profit of 20% on cost and RM90,000 of these goods were in inventories of Lion at 31 December 2019. On 1 November 2019 Lion sold warehouse equipment to Leo for RM240.000 from inventories. Leo has included this equipment in its property, plant and equipment The equipment had been purchased on credit by Lion for RM200,000 in October 2019 and this amount is included in its current liabilities as at 31 December 2019 (M) Loo charges depreciation on its warehouse equipment at 20% on costs company policy to charge a full year's depreciation in the year of acquisition to be included in the cost al sales. (vii) An impairment test conducted at the year and did not reveal any impairment losses, x) It is the group's policy to value the non-controlling interest a ir value at the date of acquisition. The fair value of the non controlling interests in Leo on 1 January 2015 was RM500,000. The fair value of the 28% non-controlling interest in Tiger on 1 January 2017 was RM900.000 10 All trading profits and losses are deemed to accrue evenly throughout the year. You are required to prepare Consolidated Statement of Comprehensive Income and Statement of Financial Position for Lion Group using the eleven (11) steps as set out below. Marks for each correct answer are indicated at the end of each question Identify the group structure-le, which company is the subsidiary? Which company is the associate? How much influence does the parent have in the associate? Determine the date of acquisition Question 1 (a) () Define the meaning of a subsidiary and explain how control is achieved. (4 marks Define the meaning of an associate and significant influence. [4 marks! Question 2 a) Among the four (4) companies namely Lion Berhad, Leo Berhad, Tiger Berhad and Cat Berhad, which company is the parent? Which company is the subsidiary and which company is the associate? (6 marks b) Determine the date of acquisition of subsidiaryfies) / associate(s). 12 marks] Please support your answer with MFRSs, as marks will be allocated for Sep Identify the net assets of the subsidiary at the date of acquisition Question 3 (a) Identify the net assets of the subsidiary at the date of acquisition 14 marks! (b) Define net assets (4 marks! You may use the format as below to present your answer Calculate the goodwill for the subsidiary. Question 4 MERS 3 Business Combination permits goodwill to be measured on a basis or partial goodwill method. goodwill (a) Explain goodwill with example, 12 marks] (b) What is the difference between recognising full goodwill and partial goodwill? (4 marks) (c) Negative goodwill is also known as bargain purchase Explain the accounting treatment for bargain purchase in accordance to MERS 3, Business Combination 12 marks Question 5 Calculate the goodwill for Lion Berhad. 18 marks You may use the format as below to present your answer Subsidiary Group Consideration transferred / FV NCI NCI Share of net assets acquired: Share capital Retained earnings scquisition Fair value adjustment 3386 8888 Group/NCI share (0%) Goodwill Calculate the reserves for the parent company at the consolidation date. Question 6 Calculate the reserves for Lion Group at the consolidation date. (8 marks Calculate the investment in the associate Question 7 (a) Explain the accounting method used for associate (4 marks (b) Calculate the investment in the associate for Lion Group 14 marks ( 5 ) Calculate the non-controlling interest Question & (a) (b) Explain non-controlling interest. 12 marks] Calculate the non-controlling interest to be presented in the consolidated financial statements [6 marks) Combine items like assets, liabilities, equity, income, expenses and cash flows of the parent with those of its subsidiaries Question 9 Using format provided below, combine items like assets, liabilities, equity, income, expenses and cash flows for Lion Berhad and its subsidiaries [12 marks] Statements of Comprehensive Income for Year Ended 31 December 2019 Leo Tiger Combine Berhad Berhad Berhad RM000 RM200 RM000 RM 000 Revenue Cost of Sales Lion Administrative expenses Finance costs Profit before tax Income tax expense Profit for the year Statement of Financial Position for Year Ended 31 December 2019 Lion Berhad Leo Berhad Tiger Combine Non-current assets Berhad RM 000 RM 000 RM000 RM OOO Property, plant and equipment (NBV) Shares in Led Shares in liger Current assets Total Assets Equity RM1 ordinary shares Retained earnings Current labtes Total Equity and Liabilities Eliminate in full intragroup assets and liabilities offset the carrying amount of the parent's investment in each subsidiary and parent's portion of equity of each subsidiary. Also, recognize non-controlling interest and goodwill Question 10 Using format provided below and figures from Step 7. you are required to (a) Eliminate the carrying amount of the parent's investment in each subsidiary, and the parent's portion of equity of each subsidiary, and (b) Recognise non-controlling interest and goodwil in the Statement of Financial Position 18 mars! Combine RMPOOO Add Eliminate Adjusted RM1000RMOOORM 000 Non-current assets Property, plant and equipment (NBV) Investments Shares in Leo Shares in Tiger Goodwil Current assets Total Assets Equity RM1 ordinary shares Retained earnings Current is Non controlling interest in Tige Non controlling interest in Cat Total Equity and Liabilities Eliminate in full intragroup income and expenses relating to transactions between entities of the group. Question 11 Using format provided below and figures from Step 7. you are required to eliminate in tullintragroup income and expenses relating to transactions between entities of the group 18 marks! Combine RM000 Eliminate RM 000 Add RM000 Adjusted RM000 Ravenue Cost of Sales Gross profit Distribution costs Administrative expenses Finance costs Profit before tax income tax expense Profit for the year Profit attributable to Owners of the parent Non Controlling Interest Consolidate associate in Statement of Financial Position using the below method Every line of asset and ability - 100% of parent One in investment-percentage of interest in associate Consolidate associate in Statement of Comprehensive Income using the below method Every line of income and expenditure -100% of parent company One line share of gross profit, interest, taxation - percentage of interest in associate Question 12 Using format provided below and figures from Step 8 & Step you are required to consolidate associate in Statement of Financial Positions and Statement of Comprehensive Income 18 marks] Lion Group Statements of Financial Position for Year Ended 31 December 2019 Combine Eliminate Add Consolidate RW 000 RM 000 RM 000 RM 000 Non current assets Property plant and equipment NEM investment in car Goodwill Current assets Total Assets Equity RM1 ordinary shares Current liabilities Non controling interest in Tiger Non controling interest in Cat Total Equity and Liabilities Lion Group Statements of Comprehensive Income for Year Ended 31 December 2010 Combine Eliminate Add Consolidate RM000 RM"000R M'000 Revenue Com of Sales Gross pront Distrbution costs Administrative expenses Profit before Share of profit in associa Shine of passina LILI Profattbutable to Non Controlling interes JEND OF QUESTION PAPERI