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WS Bhd, its principal activity is property construction, acquired 80% interest in the equity capital of YY Bhd on 2 February 2019 for On 2 February 2019, YY Bhd's share capital was with the share price of RMI.50 per unit, the retained earnings were and revaluation reserves were on 2 February 2019. The group policy is to apply the proportionate share of the net identifiable assets method to measure the non-controlling interest. The financial statements of both companies for the year ended 31 December 2021 was as follows: Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2021 Revenue Cost of sales Gross profit Other income Less: Administration expenses Staff cost Selling and distribution expenses Finance cost Profit before tax Less: Tax expenses Profit for the year WS Bhd RM'OOO 850,000 530,000 320,000 260,000 221 ,ooo 101,000 65,000 10,000 183 ,ooo 45,000 138,000 Statements of Changes in Equity (Partial) For the year ended 31 December 2021 Retained earnings brought forward + Profit for the period Dividend Retained earnings carried forward WS Bhd RM'OOO 310,000 138,000 (50,000) 398,000 Statement of Financial Position As at 31 December 2021 4 Non-current assets Property, plant and equipment Deferred tax assets Land held for property development Investment in YY Bhd Investment in GG Bhd Other investments Total non-current assets Current assets Property development costs Inventories Receivables Cash and bank balances Total current assets Total assets Equity Share capital (RMI per unit) Retained earnings Revaluation reserves Total equity Non-current liabilities Deferred tax liabilities Long term Islamic debts Long term borrowings Total non-current liabilities Current liabilities Payables Short term Islamic debts Short term borrowings Total current liabilities Total liabilities Total equity and liabilities Additional information: 5 WS Bhd RM'OOO 250,000 30,000 550,000 450,000 30,000 50,000 280,000 200,000 290,000 160,000 930,000 2,290,000 500,000 398,000 262,000 50,000 240,000 160,000 450,000 480,000 110,000 90,000 680,000 2,290,000 VY Bhd RM'OOO 340,000 200,000 140,000 180,000 93,000 50,000 58,000 4,000 115,000 28,000 87,000 YY Bhd RM'OOO 180,000 87,000 (36,000) 231,000 YY Bhd RM'OOO 440,000 18,000 30,000 488,000 184,000 213,000 176,000 573,000 1,061,000 200,000 231,000 75,000 506,000 40,000 300,000 340,000 185,000 30,000 215,000 555,000 1,061,000 2. 3. 4. 5. 6. 7. 8. 9. The company's income tax rate for the year was 24%. The tax effects on unrealized profit for intragroup transactions need to be accounted for. The group policy is to depreciate the property, plant and equipment using the straight- line method and on full-year depreciation basis. During the year, there is an impairment of goodwill amounting to (gross amount). The impairment loss is to journalize to administration expenses. The companies declared and paid dividend during the year. The dividend received is to journalize to other income account. During the prior year, WS Bhd sold goods to YY Bhd for with inventories balance of respectively. The profit margin was 20% on cost. YY Bhd sold inventories to WS Bhd amounting to during the current year. From this amount, still remained in the ending inventories of WS Bhd at the year-end. The profit margin was 20% on cost. On 28 February 2021, YY Bhd sold machinery to WS Bhd for RM25,OOO,OOO. YY Bhd originally bought the machinery at the value of The machinery was depreciated for four years and the remaining useful life is six years. The gain on disposal of machinery is to journalize to other income account and loss on disposal of machinery including depreciation is to journalize to administration expenses. WS Bhd had acquired 25% interest in the equity capital of GG Bhd on I January 2021 amounting to WS Bhd used the cost method to record the transactions of GG Bhd. GG Bhd profit before tax 2021 is WS Bhd has provided an interest-free short-term borrowing to GG Bhd amounting to on 20 November 2021. On 24 December 2021, GG Bhd declared and paid dividend of The dividend received is to journalize to other income account. REQUIRED: (To show all the workings and round-up your answers, no decimal points) (a) (b) (c) (d) (e) Calculate the goodwill on consolidation. Compute the goodwill impairment recognized in 2021 using the gross goodwill method. Prepare the relevant consolidation journal entries for the year ended 31 December 2021. Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income of WS Bhd for the year ended 31 December 2021. Prepare the Consolidated Statement of Financial Position of WS Bhd as at 31 December 2021.