Question 1

Statement of Financial Position as at 31 March 2022:

	Picasso (RM000)	Salvatore (RM000)	Allori (RM000)
Investment: Ordinary shares of Salvatore Ordinary shares of Allori	10,000 4,000	- 3,200	- -
Non-current assets	11,200	8,100	5,150
Current assets: Inventory Current account Salvatore Allori Trade receivables Bank	3,665 300 120 3,225 2,500	1,131 - - 1,243 1,099	667 - - 754 321
Total assets	35,010	14,773	6,892
Ordinary shares	26,000	10,000	5,000
Retained earnings	5,400	3,201	981
Current account - Picasso	-	300	100
Trade payables	3,610	1,272	811
Total equities and liabilities	35,010	14,773	6,892

Additional information:

1. Picasso Bhd acquired 80% of the ordinary shares issued by Salvatore Sdn Bhd on 1 January 2020 when the retained earnings of Salvatore was RM1.5 million. On this date, plant belonging to Salvatore had a fair value of RM50,000 more with an estimated useful life of 5 years. Salvatore has not recorded this fair value adjustment.

2. Picasso acquired 30% of the ordinary shares issued by Allori Sdn Bhd on 1 April 2021. On this same date, Salvatore also acquired 40% of the ordinary shares in Allori Sdn Bhd. Retained earnings on this date is RM700,000.

3. Allori sold inventories to Salvatore during the year at the invoice value of RM50,000 at cost plus 25% during the year of which none has been sold. This transaction is recorded as trade receivables and trade payables in Allori and Salvatores books respectively. Salvatore remitted RM20,000 to Allori on 31^st March 2022, but the payment was only received post year end.

4. Difference in current account is due to payment in transit.

5. Partial goodwill of Salvatore was impaired by 40% by 31 March 2022.

Required:

Prepare the Consolidated Statement of Financial Position as at 31 March 2022.

Note: Show ALL relevant workings

[20 marks]