Oliver Berhad is an apparel company which has acquiring established companies in expanding its business. Given below are the financial statements of the three companies, Oliver Berhad, Gracie Berhad and Harley Berhad for the year ended 31 December 2018.

Statements of Comprehensive Income for the year ended 31 December 2018

	Oliver	Gracie	Harley
	RM000	RM000	RM000
Sales	40,000	12,000	16,000
Cost of sales	(16,000)	(5,600)	(8,000)
Gross profit	24,000	6,400	8,000
Expenses	(12,000)	(3,200)	(4,000)
Operating profit before tax	12,000	3,200	4,000
Investment income from: Gracie Harley	640 400	- -	- -
Profit before taxation	13,040	3,200	4,000
Taxation	(4,000)	(1,200)	(1,600)
Profit for the year	9,040	2,000	2,400
Retained profit at 1 January 2018	48,000	11,200	9,200
Dividends paid:
Ordinary Preference	4,000 4,000	800 400	1,600 -

Statements of Financial Position as at 31 December 2018

	Oliver	Gracie	Harley
	RM000	RM000	RM000
ASSETS: Non-current assets Accumulated depreciation Investments at cost: 400,000 ordinary shares in Gracie 125,000 ordinary shares in Harley	160,000 (40,000)	80,000 (20,000)	80,000 (32,000)
	52,000 14,000	- -	- -
Inventories Trade and other receivables Cash at bank	8,000 12,000 3,040	2,800 2,000 1,600	2,400 4,000 2,000
	209,040	66,400	56,400
Ordinary shares Preference shares Retained profits Trade and other payables Tax payable	112,000 28,000 49,040 16,000 4,000	42,000 8,000 12,000 3,200 1,200	40,000 - 10,000 4,800 1,600
	209,040	66,400	56,400

Additional information:

(1) On the date of acquisition (1 January 2016)

• Oliver Berhad had acquired the ordinary shares when the retained profits of Gracie Berhad were RM6,800,000 and Harley Berhad were RM5,200,000.
• The total number of ordinary shares in both Gracie Berhad and Harley Berhad were 500,000 shares each.
• Oliver Berhad revalued a piece of land owned by Gracie Berhad to a fair value of RM4,000,000 more than its book value.

(2) During the year ended 31 December 2018

• Gracie Berhad owed RM400,000 to Oliver Berhad. Gracie Berhad posted a cheque of RM40,000 to Oliver Berhad on 30 December 2018 which has yet to arrive until 3 January 2019.
• Oliver Berhad selling goods to Gracie Berhad invoiced at RM4,000,000. The goods are traded by using the mark-up of 25% on cost to arrive at selling price. One-quarter of these goods was still in closing inventory of Gracie Berhad at 31 December 2018.

(3) Oliver Berhads policy is to value the non-controlling interest by recognising the parents share of goodwill only. Besides that, the fair value of Oliver Berhads share on 1 January 2016 was RM2.50 each.

(4) All the dividends had been paid in the current year.

(5) Ignore any deferred tax effects.

REQUIRED:

1. Prepare the Consolidated Statement of Comprehensive Income for the year ended 31 December 2018 for Oliver Group.
2. Calculate the amount of goodwill arising from the acquisitions in Gracie Berhad and Harley Berhad.
3. Calculate the amount of Group Retained Profits and Non-controlling Interests that should be recorded in the Consolidated Statement of Financial Position.

d. Prepare the Consolidated Statement of Financial Position as at 31 December 2018 for Oliver Group.