North Berhad, a public limited company, acquired 80% ordinary shares in East Berhad on 1 January 2017 for RM8,640,000 when the accumulated retained earnings of East Berhad were RM2,000,000. North Berhad also acquired one third (1/3) of the issued ordinary share capital in West Berhad on 1 July 2010 for RM4,000,000 Balance sheets of the three companies as at 31 December 2019 are given below: West RM1000 Non-current assets Freehold property Plant and equipment Investments in companies North RM 000 10,000 6,100 14,000 30,100 East RM 000 1,000 7,400 1,820 10.220 8,550 510 9.000 Current assets Inventories Accounts receivable Cash and cash equivalents Current liabilities Accounts payable Taxation 1,660 1,040 480 3,180 880 580 100 1,380 800 300 150 1,050 1,240 440 1680 2,120 500 2.820 750 60 810 Net current assets 1,500 31,600 (1.280) 240 9,300 Financed by: Ordinary shares capital Retained profit bf Profit for the year Non-current Liabilities 8% Loan note 10% Bonds 10,000 12,000 8,600 3.600 3,260 1.600 3.000 4,500 1.800 1,000 31,600 500 8,960 9,300 Additional information: On February 2017, East declared and paid a net dividend of RM350,000 for the year 2016 North credited its income statement with its share of the dividend received On 1 January 2019, North acquired 60% of the 10% bonds issued by East paying RM300,000 (2) (4) (3) On 1 January 2017, a piece of land of East had a fair value of RM240,000 in excess of its book value. The value this land had not changed since acquisition During 2019, North sold goods to East for RM260,000. Two thirds of these goods were still in inventory of East at 31 December 2019. In November 2019 North sold inventory for RM130,000 to West and West has not sold any of these inventory. North transfers inventory to East and West at a mark up of 30% on cost. (5) As at the end of the year, East had not provided for the second half-year interest on the 10% Bonds. (6) Included in accounts payable of East was an amount of RM70,000 due to North. However, North has factored without recourse, RM40,000 of these accounts receivable. The group accounting policy for goodwill is to write it off on a straight-line basis over a period of five years with a proportionate charge where it arises part way through an accounting period. The amortisation of goodwill has not been recorded in the book yet. (8) Assume that income and expenses accrue evenly throughout the year. Required: (a) Prepare a consolidated statement of financial position for North Berhad and its subsidiary as at 31 December 2019, incorporating its associate in accordance with MFRS 128