Horus Berhad acquired 70% of the ordinary shares of Sunbeam on 1 January 2018 with consideration transferred of RM21 million. On the same date, Horus also acquired 40% of the preference shares issued by Sunbeam by cash consideration of RM200,000. Upon checking the previous year's statements, the retained earnings of Sunbeam as at 1 January 2018 was RM634,000. There were no issuance of new shares since acquisition date. Sunbeam's partial goodwill has been impaired by RM462,000 for the year 2019. There was no impairment recorded in the previous year. On 1 January 2019, Horus acquired 80% of the ordinary shares of Soleil Sdn. Bhd with the following consideration: Cash payment on 1 January 2019 RM2 million Horus ordinary shares valued at RM5 million Additional cash payment payable on 1 January 2020 RM3.3 million (Cost of capital is given as 10% per annum.) Horus also acquired 50% of the preference shares issued by Soleil on 1 January 2019 with cash consideration of RM150,000. On 1 April 2019, Horus acquired 20% of Athena Sdn. Bhd, ordinary shares with cash payment of RM1.5 million. There were no issuance of new shares for all the companies since 1 January 2018. Statements of Comprehensive Income for year ended 31 December 2019 Horus Sunbeam Soleil Athena RM'000 RM'000 RM'000 RM'000 Turnover 15,900 9,873 7,336 5,880 -) Cost of sales (7,880) (4.621) (3,316) (3,120) Gross margin 8,020 5,252 4,020 2,780 -) Administration expenses (3,564) (1,781) (1,153) (736) -) Selling expenses (1,996) (984) (785) (241) +) Gain from sale of plant 50 Profit before taxation 2,460 2,557 2,082 1,783 -Taxation (620) (590) (475) (340) Profit after tax 1,840 1,967 1,607 1,443 RE b 6,825 1,732 428 (849) Dividends declared in December 2019: Ordinary shares 2% 3% 5% Preference shares Full year 6% Preference shares Half year Full year 8% Preference shares 7% Debentures Full year Full year Additional Information 1. From the available records of the companies, you extracted the following fair value adjustments which have not been adjusted in the books. The group uses revaluation model to prepare its accounts: As at 1 January 2018 Horus (RM) Sunbeam (RM) Soleil (RM) Athena (RM) Plant Useful life Machinery Useful life 200,000 8 years 100,000 5 years Land 500,000 As at 31 Dec 2019 Land 400,000 300,000 150,000 The following financial statements were extracted from the company's records. Statements of Financial Position as at 31 December 2019: Horus Sunbeam RM'000 RM'000 Soleil RM'000 Athena RM'000 Investment: Ordinary shares of Sunbeam 21,000 Preference shares of Sunbeam 200 Non-current assets: Land Building Plant Machinery Equipment 25,916 11,207 6,463 3,887 15,400 9,009 3,224 2,114 2,700 1,860 1,863 866 3,100 2,136 988 872 1,950 1,269 841 654 Current assets: 10% Loan to Soleil 250 Inventory 3,010 2,356 1,335 853 Current account 780 Trade receivables 3,650 2,669 1,154 871 Bank 4,210 688 711 100 Total assets 81,916 31,444 16,579 10,217 Ordinary shares 58,850 20,000 10,000 8,000 5% Cum Preference shares 3,000 - - 6% Preference shares 500 - 8% Preference shares 300 Revaluation reserve 5,000 3,000 1,800 600 Retained eamings 8,665 3,699 2,035 594 7% Debentures 800 200 10% Loan from Sunbeam Current account - Trade payables Other payables - 250 575 195 4,235 2,806 1,896 897 1,366 664 103 126 Total equities and liabilities 81,916 31,444 16,579 10,217 2. For year ended 2018, Sunbeam sold equipment to Horus with the profit of RM50,000. Useful life of this asset is estimated to be 5 years. Full year depreciation is charged in the year of acquisition and none in the year of disposal. 3. During the year, Soleil sold inventories with the invoice value of RM800,000 to Horus at cost plus 25%. 20% of the ending inventory in Horus were inventories purchased from Soleil. 4. Soleil also sold inventories to Sunbeam at the invoice price of RM4,712,000 at cost plus 25%. 80% of these inventories have been sold off to third parties. Sunbeam has paid for 50% of the invoice balance but the payment was only received after 31 December 2019. 5. For year ended 2019, Athena sold inventories to Horus at cost plus 25%, the invoice value was RM100,000 and 50% of these inventories have been sold off. 6. Soleil has not accrued its loan interest expense for the full year and Sunbeam has not recognised the interest income in its books. 7. The group uses straight line depreciation and partial goodwill to prepare its accounts. 8. Difference in current account is due to inventory in transit. 9. All depreciation expenses and goodwill impairment are to be adjusted in administration expenses. Required: (a) Prepare the Group Statement of Financial Position as at 31 December 2019