On 1 January 2016, SOA Bhd acquired 90% interest in FPK Bhd. At that time, retained profits of FPK Bhd was RM1,000,000 and the remaining 10% non-controlling interest was measured at fair value as RM580,000. On the same date, FPK Bhd acquired 80% interest in BEC Bhd at a cost of RM2,600,000. At this acquisition date, BEC Bhds retained profits was RM600,000 and the remaining 20% non-controlling interest was measured at fair value as RM700,000.

On 1 April 2018, SOA Bhd acquired 10% in BEC Bhd for RM980,000.

The following are financial statements provided by SOA Bhd and its subsidiaries:

Statement of Comprehensive Income For the year ended 31 December 2018
	SOA Bhd RM000	FPK Bhd RM000	BEC Bhd RM000
Sales	5,200	3,550	3,800
Cost of goods sold	(2,500)	(1,000)	(1,900)
Gross profit	2,700	2,550	1,900
Less: Operating expenses	(450)	(450)	(500)
Profit before taxation	2,250	2,100	1,400
Less: Taxation	(1,060)	(980)	(400)
Profit after taxation	1,190	1,120	1,000
Retained profit, 1/1/18	2,300	2,100	800
Retained profit, 31/12/18	3,490	3,220	1,800

Statement of Financial Position As at 31 December 2018
	SOA Bhd RM000	FPK Bhd RM000	BEC Bhd RM000
Investment, at cost:
Shares in FPK Bhd	4,500	-	-
Shares in BEC Bhd	980	2,600	-
Other assets	4,880	4,480	5,000
	10,360	7,080	5,000
Financed by:
Ordinary share (RM1 each)	4,000	3,000	2,500
Retained profit	3,490	3,220	1,800
Other Liabilities	2,870	860	700
	10,360	7,080	5,000

Additional information:

1. FPK Bhd started selling goods to SOA Bhd in January 2018. During the year, FPK Bhd sold goods to SOA Bhd for RM400,000. At year end RM150,000 of the goods remained in the closing stock of SOA Bhd. The profit margin is 20% on selling price.
2. On 1 January 2017, SOA Bhd transferred a machinery with a net book value of RM300,000 to BEC Bhd. The transfer price was RM450,000 and the machine had a remaining useful life of 3 years as at the date of the transfer.
3. Tax effects on unrealized profit or loss on inter-company transactions should be ignored.
4. Assume revenue accrued evenly throughout the year.
5. There are no changes in the share capital account of all the companies in the group.
6. The group used the fair value method to record the non-controlling interest for FPK Bhd and the proportionate share of net identifiable assets method to record the non-controlling interest for BEC Bhd.

REQUIRED:

1. Record all the consolidation journal entries of SOA Bhd and its subsidiaries for the year ended 31 December 2018 using one-stage method.

2. Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income of SOA Bhd and its subsidiaries for the year ended 31 December 2018.

3. Prepare the Consolidated Statement of Changes in Equity of SOA Bhd and its subsidiaries for the year ended 31 December 2018.

4. Prepare the Consolidated Statement of Financial Position of SOA Bhd and its subsidiaries for the year ended 31 December 2018.