On 1 January 2020, Emas acquired 80% of the equity interests of Manis Bhd (Manis), a privately owned entity, for a consideration of RM57 million. The consideration comprised cash of RM52 million and the transfer of non-depreciable land with a fair value of RM5 million. The carrying amount of the land at the acquisition date was RM3 million and the land has only recently been transferred to the seller of the shares in Manis and is still carried at RM3 million in the group financial statements at 31 December 2020. At the date of acquisition, the identifiable net assets of Manis had a fair value of RM55 million. Manis had made a net profit attributable to ordinary shareholders of RM4 million for the year to 31 December 2019. The directors of Emas wish to measure the non-controlling interest at fair value at the date of acquisition but had again omitted NCI from the goodwill calculation. The NCI is to be fair valued using a public entity market price of RM15 per share. The finance director has determined that a bargain purchase of RM3 million arose on the acquisition of Manis being the cash consideration of RM52 million less the fair value of the net assets of Manis of RM55 million. This gain on the bargain purchase had been included in the group financial statements above.

Compute the NCI of Manis at the date of acquisition? *

RM15,000

RM14,000

RM12,000

None of the above

Compute the goodwill at date of acquisition of Manis? *

1 point

RM15,000

RM14,000

RM12,000

None of the above

NCI

Property, Plant & Equipment (PPE)

Goodwill

Retained Earrings (RE)

NCI

Property, Plant & Equipment (PPE)