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Please help me i will give good rating The Arema Group carries on business as a primer distributor of cosmetic products in the country. The
Please help me i will give good rating
The Arema Group carries on business as a primer distributor of cosmetic products in the country. The Statements of Comprehensive Income of the three companies for the year ended 31 December 2021 are as follows: Arema Hagan Chera RM 1000 RM 1000 RM 4000 Revenue Cost of sales Gross profit Distribution costs Administration expenses Profit before interest and tax Finance cost Profit before tax Income tax expenses Profit for the year 6,500 (1,750) 4,750 (980) (570) 3,200 (210) 2.990 (354) 2.636 2.800 (940) 1,860 (300) (150) 1,410 (50) 1,360 (270) 1,090 1,550 (760) 790 (110) (75) 605 605 (15) 590 i. On 1 February 2021, Arema acquired 75% of the equity share capital 1,000,000 unit@ RM1 of Hagan for RM1,700,000 at which date there was a credit balance on the retained earnings of Hagan was RM700,000. The fair value of Hagan net assets was equal to their carrying amount except the building had a fair value that was RM500,000 higher than its carrying amount in the accounting record. The building had an estimated remaining useful life of 5 years, it uses straight line method of depreciation. The group charges depreciation on monthly basis for building. ii. On 1 January 2020 Hagan acquired 80% of the equity share capital 500,000 unit @ RM1 of Chera for RM880,000 at which date there was a credit balance on the retained earnings of Chera of RM450,000 and on 1 February 2021 was RM510,000. No shares have been issued by Chera since Hagan acquired its interest. ii. During 2021, Arema had made intragroup sales to Hagan of RM220,000 making a profit of 12% on cost and 30% of these goods were in inventories at 31 December 2021. iv. Chera had made intragroup sales to Hagan of RM70,000 making a profit margin of 30% on sales and RM50,000 of these goods were in inventories at 31 December 2021. V. An impairment test was conducted at the year end and the goodwill was completely written off. vi. It is the group's policy to value the non-controlling interest as a proportion of the net assets. Required: Prepare the consolidated statement of comprehensive income for the Arema group for the year ended 31 December 2021Step by Step Solution
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