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please help me i will give you good rating On 1 January 2020. Talented Berhad acquired a 100% equity interest in an overseas subsidiary. Tender
please help me i will give you good rating
On 1 January 2020. Talented Berhad acquired a 100% equity interest in an overseas subsidiary. Tender Private Limited for a cash consideration of RM410,000. On the date of acquisition, the share capital of Tender Private Limited consists of 1,100,000 ordinary shares of S$1 each and the retained profits were S$150,000. Tender Private Limited Statement of Profit or Loss and Movements in Retained Profits for the year ended 31 December 2020 S$'000 4,500.00 Sales Cost of goods sold Opening inventories Purchases Less: Closing inventories 500.00 1,800.00 2,300.00 700.00 (1,600.00) 2,900.00 Gross profit Less: Expenses Depreciation of property, plant & equipment Administration & other expenses Profit before taxation Less: Taxation Profit after taxation 100.00 400.00 (500.00) 2,400.00 (300.00) 2,100.00 Movements in Retained Profits Profit for the year Pre-acquisition profit Post-acquisition profits c/f 2,100.00 150.00 2,250.00 Tender Private Limited Statement of Financial Position as at 31 December 2020 Non-current assets Current assets Less: Current liabilities Net current assets SS'000 4,100.00 900.00 (1,500.00) 3,500.00 Share capital of S$1 each Pre-acquisition profits Profit for the year 1,100.00 150.00 2,250.00 3,500.00 Talented Berhad is using closing rate method to translate the financial statements of the foreign subsidiary. The rates of exchange are: Dates 1 January 2020 Average for the year to 31 December 2020 31 December 2020 S$ to RM1 4.0000 3.2000 3.0000 Required: (1) Translate the Statement of Profit or Loss and Movements in Retained Profits of Tender Private Limited into the presentation currency for consolidation purpose. (11) Translate the Statement of Financial Position of Tender Private Limited into the presentation currency for consolidation purposeStep by Step Solution
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