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Bose, a public limited company, acquired two subsidiaries, Zenitlh and Blase, both public limited companies on 1 June 2011. The details of the acquisitions at that date were as follows: Ordinary Ordinary Fair value of net share Cost of share Reserves Subsidiary capital of RM1 assets at investment capital acquisition acquired RM m RM m RM m RM m RM m 350 Zenith 250 770 250 600 200 400 270 120 Blas 150 The draft statements of comprehensive income for the year ended 31 May 2013 are RM'000 RM'000 Sales revenue 3,000 2,300 600 (1,600)(500 Cost of sales Gross profit 1,000 700 Distribution costs (240) (230) (120) Administrative expenses Profit from operations 250 100 (12) Finance cost-interest expense (20) (10) 100 Investment income receivable (including inter company dividends paid May 2013) Profit before taxation 240 640 Income tax expense (130) (36) Profit for the year 510 160 52 1,400 Retained ernings 1 June 2012 400 190 The following information is relevant to the preparation financial statements: of the group f 1. On 1 December 2012, Bose sold 50 million RM1 ordinary shares in Zenith for RM155 million. The only accounting entry made by Bose was to record the receipt of the cash consideration in the cash account and in a suspense account. 2. Blase had sold RM150 million worth of goods to Bose on 30 April 2013. There was no opening inventory of goods but the closing inventory of these goods in Bose's financial statements was RM90 million. The profit on these goods was 30% on selling price. inter-company 3. Bose had paid a dividend of RM50 million in the year and Zenith had paid a dividend of RM70 million in May 2013. 4. The fair value adjustments have been incorporated into the subsidiaries' records. 5. Ignore the tax implication of any capital gains made by the group and assume profits accrue evenly throughout the year. Required Prepare a consolidated statement of comprehensive income for the Bose Group for the year ended 31 May 2013. Bose, a public limited company, acquired two subsidiaries, Zenitlh and Blase, both public limited companies on 1 June 2011. The details of the acquisitions at that date were as follows: Ordinary Ordinary Fair value of net share Cost of share Reserves Subsidiary capital of RM1 assets at investment capital acquisition acquired RM m RM m RM m RM m RM m 350 Zenith 250 770 250 600 200 400 270 120 Blas 150 The draft statements of comprehensive income for the year ended 31 May 2013 are RM'000 RM'000 Sales revenue 3,000 2,300 600 (1,600)(500 Cost of sales Gross profit 1,000 700 Distribution costs (240) (230) (120) Administrative expenses Profit from operations 250 100 (12) Finance cost-interest expense (20) (10) 100 Investment income receivable (including inter company dividends paid May 2013) Profit before taxation 240 640 Income tax expense (130) (36) Profit for the year 510 160 52 1,400 Retained ernings 1 June 2012 400 190 The following information is relevant to the preparation financial statements: of the group f 1. On 1 December 2012, Bose sold 50 million RM1 ordinary shares in Zenith for RM155 million. The only accounting entry made by Bose was to record the receipt of the cash consideration in the cash account and in a suspense account. 2. Blase had sold RM150 million worth of goods to Bose on 30 April 2013. There was no opening inventory of goods but the closing inventory of these goods in Bose's financial statements was RM90 million. The profit on these goods was 30% on selling price. inter-company 3. Bose had paid a dividend of RM50 million in the year and Zenith had paid a dividend of RM70 million in May 2013. 4. The fair value adjustments have been incorporated into the subsidiaries' records. 5. Ignore the tax implication of any capital gains made by the group and assume profits accrue evenly throughout the year. Required Prepare a consolidated statement of comprehensive income for the Bose Group for the year ended 31 May 2013
