QUESTION 1 Bagus Bhd is a public company listed in the food and beverage sector. It produces and markets packaged foods and soft drinks. The company acquires control of companies in the construction, healthcare, and technology sectors to diversify its business risks. Investment in Besar Bhd Bagus Bhd acquired 75% of ordinary shares in Besar Bhd, a construction company for RM960 million on 1 January 2018, when Besar Bhd's asset revaluation reserve and retained profit was RM108 million and RM100 million, respectively. The fair value of Besar Bhd's net assets on thedate of acquisition was equal to the carrying amount. For the year ended 31 December 2021, the goodwill from investment in Besar Bhd has been impaired by 10%. The impairment loss has yet to be adjusted in Bagus Bhd's book. Investment in Cecel Bhd 1 January 2020, Bagus Bhd acquired 60% of ordinary share capital and RM45 million of the 8% debentures of Cecel Bhd, a healthcare company, for a cash consideration of RM322.5 million and RM45 million, respectively. On the date of acquisition, the asset revaluation reserve and retained profit of Cecel Bhd were RM72 million and RM117 million, respectively. The fair value of Cecel Bhd's freehold land was RM 3 million over its carrying amount at the date of acquisition. Cecel Bhd has not adjusted this amount to reflect the fair value in its books. On 1 January 2021, Bagus Bhd acquired another 20% of the ordinary shares of Cecel Bhd. The consideration amounting to RM67.2 million was paid by issuing 12 million new shares. Bagus Bhd has not recorded this transaction. On that date, the fair value of the identifiable net asset of Cecel Bhd was equal to its carrying value except for the unadjusted fair value for the freehold land as mentioned above. Investment in Terbaik Bhd On 1 January 2021, Besar Bhd acquired 60 million out of 75 million units of ordinary shares of Terbaik Bhd, a technology company. The acquisition was settled through a cash consideration of RM180 million. As of the acquisition date, the carrying amount of Terbaik Bhd's net asset wasequal to its fair value except for a freehold land that has an excess of RM1.6 million. On 31 December 2021, the freehold land was revalued again, resulting in an increase of RM700,000. These revaluations have not been incorporated in Terbaik Bhd's account as at year-end. Investment in Kecil Bhd On 1 July 2021, Bagus Bhd acquired 25% interest in Kecil Bhd for a cash consideration of RM45 million. Bagus Bhd had a significant influence over Kecil Bhd's operating and financial activities. The fair value of Kecil Bhd's net assets on this date was equal to the carrying amount. For the year ended 31 December 2021, Kecil Bhd has reported a net profit of RM18 million.