Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please guide me on this urgently : thank you Given below are the statements of financial position of RA Bhd, RB Bhd and RC Bhd

image text in transcribed

please guide me on this urgently : thank you

image text in transcribedimage text in transcribed
Given below are the statements of financial position of RA Bhd, RB Bhd and RC Bhd as at 31 December 2019. RA Bhd RB Bhd RC Bhd RM RM RM Non-current assets 800,000 200,000 890,000 Investment in shares of subsidiaries at cost 1,900,000 Current assets 200,000 900,000 760,000 2,900,000 1,100,000 1,650,000 Ordinary share capital 1,600,000 750,000 1,290,000 Retained profits at 1 January 2019 630,000 120,000 160,000 Profit for the year 510,000 80,000 80,000 Trade and other liabilities 160,000 150,000 120,000 2,900,000 1,100,000 1,650,000 Continued...Additional information: a) RA Bhd acquired 60% of RB Bhd on 1 January 2017 for RM450,000 when the retained profit of RB Bhd was RM210,000. b) RA Bhd acquired 320,000 of the issued 400,000 ordinary shares of RC Bhd on 1 January 2019 for RM1,350,000. c) On 1 June 2019, RA Bhd acquired another 40,000 of the ordinary shares of RC Bhd for RM100,000. On this date, a non-depreciable non-current asset of RC Bhd was valued at RM200,000 higher compared to its carrying amount. d) During year 2019, RA Bhd sold inventories of sale value RM100,000 to RB Bhd. RA Bhd sold these inventories to RB Bhd at cost plus 25 percent. All of these inventories remain in the closing inventories of RB Bhd. Required: In accordance with MFRS 10 Consolidated Financial Statements: i. Assess whether there was a goodwill or bargain purchase on 1 January 2017. (2 marks) ii. Appraise whether there is a group gain or loss on the acquisition of more shares in RC Bhd. (2 marks) iii. Evaluate the financial position of RA Bhd by preparing its consolidated statement of financial position as at 31 December 2019. (6 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

6th edition

1259969479, 1259565408, 978-1259969478

More Books

Students also viewed these Accounting questions

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago