QUESTION 1

Healthpro Bhd has been successfully implemented its business expansion through acquisitions of subsidiaries and associate company.

Acquisition of Medipro Bhd

On 1 January 2018, Healthpro Bhd acquired 48 million of 60 million ordinary shares of Medipro Bhd. The consideration transferred for the acquisition of the shares was settled by way of an issue of 98 million units of ordinary shares in Healthpro Bhd at the price of RM2.00 per share. On that date, the issued and paid-up ordinary share capital and the retained profit of Medipro Bhd were RM60 million and RM109 million respectively and there were no other reserves.

On 1 September 2019, Healthpro Bhd disposed 25 percent (12 million units) of its interest in ordinary shares of Medipro Bhd for RM73.8 million.

Acquisition of Promedic Bhd

Healthpro Bhd acquired 18 million of 60 million ordinary shares in Promedic Bhd on 1 January 2019 for RM23 million cash. On 1 January 2019, the issued and paid-up ordinary share capital and retained profit of Promedic Bhd were RM60 million and RM16 million respectively. On that date, the fair value of one of the depreciable assets of Promedic Bhd was RM4 million more than it's carrying amount. The remaining useful life of the asset was 10 years.

Profit after tax for the year ended 31 December 2019 of Promedic Bhd was RM15 million. Healthpro Bhd applied equity accounting for its investment in Promedic Bhd.

Acquisition of Safepro Bhd

On 1 July 2019, Healthpro Bhd acquired 60% ordinary shares in Safepro Bhd for RM119,400,000. On that date, the fair value of net asset of Safepro Bhd recorded a value of RM194 million.

An impairment test at year ended 31 December 2019 recommended an impairment loss on goodwill on consolidation in Safepro Bhd at 10%.

Financial Statements

Given below are the Statements of Profit or Loss and Statements of Changes in Equity of Healthpro Bhd, Medipro Bhd and Safepro Bhd for the year ended 31 December 2019.