main company of focus tulip berhad

Practice Question 9: Tulip Group The following information has been extracted from the draft financial statements of Tulip Berhad and its subsidiaries for the year ended 31 March 2018. Draft statements of financial position at 31 March 2018 Tulip Blossom Freesia Berhad Berhad Berhad RM RM RM ASSETS Non-current assets Land and buildings 1,891,890 1,489,860 1,756,000 Machinery and equipment 1,485,000 677.160 837,350 Investments in Blossom Berhad and 1,620,000 Freesia Berhad at cost 4,996,890 2,167,020 2,593,350 Current assets Inventories 1,461,240 420,120 589,950 Trade receivables 663,120 301,860 243,000 Current accounts: Blossom Berhad 407.160 and Freesia Berhad Cash at bank 190,080 121,500 106,380 Total assets 7,718,490 3,010,500 3,532,680 EQUITY AND LIABILITIES Equity Ordinary RM1 shares 2,160,000 810,000 432,000 Retained eamings 1.826,550 409,050 582,660 Revaluation reserve 837,000 270,000 4,823,550 1,219,050 1,284,660 Current liabilities Trade payables 3,040 436,740 409,860 Current accounts: Tulip Berhad 137.160 216,000 Other payables 2,286.900 1,217,550 1,622,160 Total equity and liabilities 7,718,490 3,010,500 3,532,680 107 Page Draft statements of comprehensive income for the year ended 31 March 2018 Tulip Blossom Freesia Berhad Berhad Berhad RM RM RM Revenue 2,835,000 787.320 838,620 Cost of sales 1.237,005 397 575 390,690 Gross profit 1,597.995 389.745 447,930 Operating expenses 247 320 82.620 109,080 Profit before tax 1,350,675 307,125 338,850 Tax expense 270,135 61,425 67,770 Profit for the year 1.080 540 245.700 271,080 Extract from draft statement of changes in retained earnings for the year ended 31 March 2018 Tulip Blossom Freesia Berhad Berhad Berhad RM RM RM Balance at 1 April 2017 746,010 163,350 311,580 Profit for the year 1,080 540 245 700 271,080 Balance at 31 March 2018 1.826.550 409,050 582,660 The following information is also available: 1) On 1 April 2017. Tulip Berhad acquired 648,000 ordinary shares in Blossom Berhad for RM864,000. At that date, the retained earnings in Blossom Berhad amounted to RM163,350. There have been no changes in Blossom Berhad's ordinary shares since that date. 2) Tulip Berhad acquired 302,400 ordinary shares in Freesia Berhad on 1 March 2015 when the retained earnings and revaluation reserve in Freesia Berhad amounted to RM243,000 and RM270,000 respectively. There have been no changes in Freesia Berhad's ordinary shares since then. 3) On 28 March 2018, Freesia Berhad sent a cheque for RM54,000 to Tulip Berhad. The cheque was received by Tulip Berhad and recorded in its accounting records on 2 April 2018. 4) During the year ended 31 March 2018, total sales made by Blossom Berhad to Tulip Berhad amounted to RM405,000. Blossom Berhad prices its goods at cost plus a mark- up of 20%. At the year end, Tulip Berhad's closing inventory included goods purchased from Blossom Berhad for RM135,000. 5) At 31 March 2018, the goodwill arising on consolidation of Blossom Berhad was impaired by RM32,000. There has been no impairment of the goodwill arising on consolidation of Freesia Berhad 6) On 26 March 2018, the directors of Tulip Berhad proposed a dividend for the year of RMO. 15 per share. The proposed dividend has not yet been reflected in the draft financial statements above. 7) Tulip Berhad's group policy is to measure the non-controlling interest at acquisition using the proportion of net assets method. Required: Prepare the consolidated statement of comprehensive income for Tulip Berhad and its subsidiaries for the year ended 31 March 2018, in accordance with Malaysian Financial Reporting Standards Prepare a summary to show the movements in the group's retained eamings for the year ended 31 March 2018 108 Page () Prepare the consolidated statement of financial position of Tulip Berhad and its subsidiaries as at 31 March 2018, in accordance with Malaysian Financial Reporting Standards. Practice Question 9: Tulip Group The following information has been extracted from the draft financial statements of Tulip Berhad and its subsidiaries for the year ended 31 March 2018. Draft statements of financial position at 31 March 2018 Tulip Blossom Freesia Berhad Berhad Berhad RM RM RM ASSETS Non-current assets Land and buildings 1,891,890 1,489,860 1,756,000 Machinery and equipment 1,485,000 677.160 837,350 Investments in Blossom Berhad and 1,620,000 Freesia Berhad at cost 4,996,890 2,167,020 2,593,350 Current assets Inventories 1,461,240 420,120 589,950 Trade receivables 663,120 301,860 243,000 Current accounts: Blossom Berhad 407.160 and Freesia Berhad Cash at bank 190,080 121,500 106,380 Total assets 7,718,490 3,010,500 3,532,680 EQUITY AND LIABILITIES Equity Ordinary RM1 shares 2,160,000 810,000 432,000 Retained eamings 1.826,550 409,050 582,660 Revaluation reserve 837,000 270,000 4,823,550 1,219,050 1,284,660 Current liabilities Trade payables 3,040 436,740 409,860 Current accounts: Tulip Berhad 137.160 216,000 Other payables 2,286.900 1,217,550 1,622,160 Total equity and liabilities 7,718,490 3,010,500 3,532,680 107 Page Draft statements of comprehensive income for the year ended 31 March 2018 Tulip Blossom Freesia Berhad Berhad Berhad RM RM RM Revenue 2,835,000 787.320 838,620 Cost of sales 1.237,005 397 575 390,690 Gross profit 1,597.995 389.745 447,930 Operating expenses 247 320 82.620 109,080 Profit before tax 1,350,675 307,125 338,850 Tax expense 270,135 61,425 67,770 Profit for the year 1.080 540 245.700 271,080 Extract from draft statement of changes in retained earnings for the year ended 31 March 2018 Tulip Blossom Freesia Berhad Berhad Berhad RM RM RM Balance at 1 April 2017 746,010 163,350 311,580 Profit for the year 1,080 540 245 700 271,080 Balance at 31 March 2018 1.826.550 409,050 582,660 The following information is also available: 1) On 1 April 2017. Tulip Berhad acquired 648,000 ordinary shares in Blossom Berhad for RM864,000. At that date, the retained earnings in Blossom Berhad amounted to RM163,350. There have been no changes in Blossom Berhad's ordinary shares since that date. 2) Tulip Berhad acquired 302,400 ordinary shares in Freesia Berhad on 1 March 2015 when the retained earnings and revaluation reserve in Freesia Berhad amounted to RM243,000 and RM270,000 respectively. There have been no changes in Freesia Berhad's ordinary shares since then. 3) On 28 March 2018, Freesia Berhad sent a cheque for RM54,000 to Tulip Berhad. The cheque was received by Tulip Berhad and recorded in its accounting records on 2 April 2018. 4) During the year ended 31 March 2018, total sales made by Blossom Berhad to Tulip Berhad amounted to RM405,000. Blossom Berhad prices its goods at cost plus a mark- up of 20%. At the year end, Tulip Berhad's closing inventory included goods purchased from Blossom Berhad for RM135,000. 5) At 31 March 2018, the goodwill arising on consolidation of Blossom Berhad was impaired by RM32,000. There has been no impairment of the goodwill arising on consolidation of Freesia Berhad 6) On 26 March 2018, the directors of Tulip Berhad proposed a dividend for the year of RMO. 15 per share. The proposed dividend has not yet been reflected in the draft financial statements above. 7) Tulip Berhad's group policy is to measure the non-controlling interest at acquisition using the proportion of net assets method. Required: Prepare the consolidated statement of comprehensive income for Tulip Berhad and its subsidiaries for the year ended 31 March 2018, in accordance with Malaysian Financial Reporting Standards Prepare a summary to show the movements in the group's retained eamings for the year ended 31 March 2018 108 Page () Prepare the consolidated statement of financial position of Tulip Berhad and its subsidiaries as at 31 March 2018, in accordance with Malaysian Financial Reporting Standards