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Please give further working & information, will give lot lot vote! Expansion Berhad, a Malaysian company that trades internationally, acquired a wholly-owned overseas subsidiary, Foreign
Please give further working & information, will give lot lot vote!
Expansion Berhad, a Malaysian company that trades internationally, acquired a wholly-owned overseas subsidiary, Foreign Plc on 1 January 2020 for a cash consideration of RM2,500,000. The share capital of Foreign Plc consists of 10,000,000 equity shares of one Peso (P$) each and the retained profits of Foreign Plc on this date were P$5,000,000. On 1 January 2020 , the rate of exchange was 10P$ to RM1. The financial statements of Expansion Berhad and its subsidiary for the year ended 31 December 2021 were as follows: On 30 September 2021, both Expansion Berhad and Foreign Plc revalued their respective properties, and incorporated the surpluses in their accounts. The relevant rates of exchange between Pesos (P\$) and Ringgit (RM) were as follows: The average rate for the year can be taken as an approximation of the rates ruling at the dates of the transactions during the year. There were no unrealised profits. Required: Prepare the consolidated financial statements for Expansion Group for the year ended 31 December 2021 with the assumption that operations of Foreign Plc are regarded as a foreign entity. Show all workings. (40 marks)Step by Step Solution
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