Macadamia Berhad acquired a subsidiary, Almond Berhad, on 1 October 2018 The statements of financial position of Macadamia Bhd and Almond Bhd as at 30 September 2019 are as follows Macadamia Almond RM RM ASSETS Non Current assets Property, Plant and Equipment 53,181 36,762 Investment in Macadamia Bhd 29,000 82,181 Current Assets Inventories 18,200 4,267 Trade Other receivables 5,100 3,200 Bank Cash 5,184 2,870 Total Assets 110,665 47,099 EQUITY AND LIABILITIES Capital and Earnings Ordinary Share Capital 30,000 7,000 Retained earnings 34,225 28,370 Non Current Liabilities Long term loan 35,000 8,000 Current Liabilities Trade payables 11,440 3,729 Total equity and liabilities 110,665 47,099 The following information is available The share capital of Almond Bhd consists of ordinary shares of RM1 each There have been no changes to the balances of share capital and share premium during the year No dividends were paid or proposed by Almond Bhd during the year Macadamia Bhd acquired all the shares in Almond Bhd on 1 October 2018 At 1 October 2018, the retained earnings of Almond Bhd were RM24,700,000 The fair value of the non current assets of Almond Bhd at 1 October 2018 was RM37,000,000 The book value of the non current assets at 1 October 2018 was RM33,000,000 The revaluation has not been recorded in the books of Almond Bhd (ignore any effect on the depreciation for the year) There were no other differences between the book value and the fair value of the other assets and liabilities of Almond Bhd at the date of acquisition Required Prepare a Consolidated Statement of Financial Position of Macadamia Group as at 30 September 2019 (15 marks) Assume Macadamia Bhd are willing to pay RM40,000,000 to takeover Almond Bhd due to the high reputation of Almond in the industry, and no other changes in the other components involved Recalculate whether there will be a positive goodwill, a negative goodwill or none Briefly explain the requirement of the accounting treatment for the item that existed from there onwards

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Macadamia Berhad acquired a subsidiary, Almond Berhad, on 1 October 2018. The statements of financial position of Macadamia Bhd and Almond Bhd as at 30

Macadamia Berhad acquired a subsidiary, Almond Berhad, on 1 October 2018. The statements of financial position of Macadamia Bhd and Almond Bhd as at 30 September 2019 are as follows:

	Macadamia	Almond
	RM	RM
ASSETS
Non-Current assets
Property, Plant and Equipment	53,181	36,762

Investment in Macadamia Bhd	29,000
	82,181
Current Assets
Inventories	18,200	4,267
Trade & Other receivables	5,100	3,200
Bank & Cash	5,184	2,870
Total Assets	110,665	47,099

EQUITY AND LIABILITIES
Capital and Earnings
Ordinary Share Capital	30,000	7,000
Retained earnings	34,225	28,370

Non Current Liabilities:
Long term loan	35,000	8,000
Current Liabilities:
Trade payables	11,440	3,729
Total equity and liabilities	110,665	47,099

The following information is available:

The share capital of Almond Bhd consists of ordinary shares of RM1 each. There have been no changes to the balances of share capital and share premium during the year. No dividends were paid or proposed by Almond Bhd during the year.

Macadamia Bhd acquired all the shares in Almond Bhd on 1 October 2018.

At 1 October 2018, the retained earnings of Almond Bhd were RM24,700,000.

The fair value of the non current assets of Almond Bhd at 1 October 2018 was

RM37,000,000. The book value of the non current assets at 1 October 2018 was

RM33,000,000. The revaluation has not been recorded in the books of Almond Bhd (ignore any effect on the depreciation for the year). There were no other differences between the book value and the fair value of the other assets and liabilities of Almond Bhd at the date of acquisition.

Required:

Prepare a Consolidated Statement of Financial Position of Macadamia Group as at 30 September 2019.

(15 marks)

Assume Macadamia Bhd. are willing to pay RM40,000,000 to takeover Almond Bhd due to the high reputation of Almond in the industry, and no other changes in the other components involved. Recalculate whether there will be a positive goodwill, a negative goodwill or none. Briefly explain the requirement of the accounting treatment for the item that existed from there onwards.