Matani Bhd is a giant company and have expanded its business by investing in Sapi Bhd and Gaya Bhd. Given below are the summarized statements of financial position of Matani Bhd, Sapi Bhd and Gaya Bhd: Gaya Bhd '000 20,000 Statement of Financial Position as at 31 March 2013 Matani Sapi Bhd Bhd *000 "000 Assets Non-current assets (carrying value) 80.000 50.800 Investment in Sapi Bhd 65,200 Investment in Gaya Bhd 14.880 10.600 Inventories 15.000 12.800 Trade Receivables 24,700 18.200 Bill Receivables 18.200 7,200 Bank 29,300 12.800 247280 111,600 Equities Ordinary share capital 110.000 40.000 7% Cumulative preference share capital 10.000 Retained profit as at 1 April 2012 53,200 24,200 Retained profit for the year 12.600 7.500 General reserve as at 1 April 2012 15,000 8,000 General reserve transfer for the year 5,000 2.000 4.000 2.200 4.000 30,200 20.000 4,800 Liabilities Trade Payables Ordinary dividend payables Bill Payables 24,700 33.180 12.300 247280 12.100 2.000 5,800 111,600 2.400 900 2.100 30,200 Additional information: 1. Matani Bhd purchased 80% of the issued ordinary shares and 12% of the 7% cumulative preference shares capital of Sapi Bhd on 1 April 2012. The acquisition of ordinary shares was settled by cash payment of RM32 million and shares exchange of one (1) share in Matani Bhd for every five (5) shares held in Sapi Bhd. The share's market price of Matani Bhd and Sapi Bhd on 1 April 2012 was RM5.00 and RM2.00 respectively. The issue price of the ordinary shares and the preference shares of all the entities are at RM1 and RM0.50 each. 2. At acquisiton date, the fair value of building of Sapi Bhd was RM5 million more than its book value and Sapi Bhd has not made any adjustment in its book to amend the new value. The remaining life of the building was 25 years. 3. Gaya Bhd commenced business on 1 August 2012 Due to anticipated good future prospect of Gaya Bhd, the board of directors of Matani Bhd had acquired 62% of Gaya Bhd's ordinary shares on 1 October 2012. The market price of ordinary share of Gaya Bhd on 1 October 2012 was RM1.20. 4. On 1 October 2012, Matani Bhd sold one of its plant to Gaya Bhd at RM200,000 more than its net book value. The group policy is to depreciate plants at 10% on net book value and charged on monthly basis. 5. On 1 January 2013, Gaya Bhd sold goods on credit to Sapi Bhd valued at RM1 million at cost plus 25%. Half (1/2) of these goods still remain in Sapi Bhd's inventory at 31 March 2013. Sapi Bhd has paid RM500,000 for the goods purchased from Gaya Bhd, but Gaya Bhd only received RM300,000 out of the total amount paid by Sapi Bhd. 6. Sapi Bhd had declared preference dividend for the year. Neither Matani Bhd nor Sapi Bhd has recorded income from their respective investment. 7. Goodwill on the acquisition of Sapi Bhd had been impaired and should be written down by 20%. 8. The non-controlling interest is measured in to the fair value at the acquisition date. All profits are deemed to accrue evenly throughout the year. Ignore deferred tax on fair value adjustment and inter-company sale of assets. Prepare the consolidated statement of financial position of Matani Bhd and its subsidiaries as at 31 March 2013. Matani Bhd is a giant company and have expanded its business by investing in Sapi Bhd and Gaya Bhd. Given below are the summarized statements of financial position of Matani Bhd, Sapi Bhd and Gaya Bhd: Gaya Bhd '000 20,000 Statement of Financial Position as at 31 March 2013 Matani Sapi Bhd Bhd *000 "000 Assets Non-current assets (carrying value) 80.000 50.800 Investment in Sapi Bhd 65,200 Investment in Gaya Bhd 14.880 10.600 Inventories 15.000 12.800 Trade Receivables 24,700 18.200 Bill Receivables 18.200 7,200 Bank 29,300 12.800 247280 111,600 Equities Ordinary share capital 110.000 40.000 7% Cumulative preference share capital 10.000 Retained profit as at 1 April 2012 53,200 24,200 Retained profit for the year 12.600 7.500 General reserve as at 1 April 2012 15,000 8,000 General reserve transfer for the year 5,000 2.000 4.000 2.200 4.000 30,200 20.000 4,800 Liabilities Trade Payables Ordinary dividend payables Bill Payables 24,700 33.180 12.300 247280 12.100 2.000 5,800 111,600 2.400 900 2.100 30,200 Additional information: 1. Matani Bhd purchased 80% of the issued ordinary shares and 12% of the 7% cumulative preference shares capital of Sapi Bhd on 1 April 2012. The acquisition of ordinary shares was settled by cash payment of RM32 million and shares exchange of one (1) share in Matani Bhd for every five (5) shares held in Sapi Bhd. The share's market price of Matani Bhd and Sapi Bhd on 1 April 2012 was RM5.00 and RM2.00 respectively. The issue price of the ordinary shares and the preference shares of all the entities are at RM1 and RM0.50 each. 2. At acquisiton date, the fair value of building of Sapi Bhd was RM5 million more than its book value and Sapi Bhd has not made any adjustment in its book to amend the new value. The remaining life of the building was 25 years. 3. Gaya Bhd commenced business on 1 August 2012 Due to anticipated good future prospect of Gaya Bhd, the board of directors of Matani Bhd had acquired 62% of Gaya Bhd's ordinary shares on 1 October 2012. The market price of ordinary share of Gaya Bhd on 1 October 2012 was RM1.20. 4. On 1 October 2012, Matani Bhd sold one of its plant to Gaya Bhd at RM200,000 more than its net book value. The group policy is to depreciate plants at 10% on net book value and charged on monthly basis. 5. On 1 January 2013, Gaya Bhd sold goods on credit to Sapi Bhd valued at RM1 million at cost plus 25%. Half (1/2) of these goods still remain in Sapi Bhd's inventory at 31 March 2013. Sapi Bhd has paid RM500,000 for the goods purchased from Gaya Bhd, but Gaya Bhd only received RM300,000 out of the total amount paid by Sapi Bhd. 6. Sapi Bhd had declared preference dividend for the year. Neither Matani Bhd nor Sapi Bhd has recorded income from their respective investment. 7. Goodwill on the acquisition of Sapi Bhd had been impaired and should be written down by 20%. 8. The non-controlling interest is measured in to the fair value at the acquisition date. All profits are deemed to accrue evenly throughout the year. Ignore deferred tax on fair value adjustment and inter-company sale of assets. Prepare the consolidated statement of financial position of Matani Bhd and its subsidiaries as at 31 March 2013