Question 2 The following are the statement of financial position of Marvel Berhad, Shangchi Sdn Bhd and Bucky Sdn Bhd as at 31 December 2021 Marvel (RM000) Shangchi (RM000) Bucky (RM000) Investment Shangchi Sdn Bhd Bucky Sdn Bhd 5,400 850 Non current assets 12,820 6,640 2,870 Loan receivable from Shangchi Sdn Bhd Bucky Sdn Bhd 400 200 Current assets 2,230 1,260 1,840 Total assets 21,900 7,900 4,710 Ordinary shares 16,000 5,000 1,800 Preference shares 1,100 100 Retained profit 2,100 1 300 380 Loan payable to Marvel Berhad 400 200 Current liabilities 2,700 1,100 2,330 Total equities liabilities 21,900 7,900 4,710 Additional Information Marvel acquired 80 ordinary shares of Shangchi on 1 January 2019 with consideration transferred of RM5 4 million when the retained profit of Shangchi was RM820,000 Goodwill on acquisition date was calculated as RM584,000 This goodwill was impaired by 50 by 31 December 2021 Plant belonging to Shangchi had a fair value of RM200,000 more than the carrying value on 1 January 2019 It was estimated that the asset has a useful life of 8 years on this date Subsequently, this buildings fair value increased by another RM50,000 on 31 December 2021 Marvel also acquired 40 of ordinary shares of Bucky Sdn Bhd on 1 January 2021 On this date, Buckys building was estimated to have a higher fair value of RM100,000 with a useful life of 20 years Subsequently this buildings fair value increased by another RM50,000 by 31 December 2021 Retained earnings on this date was recorded as RM200,000 During the year, Marvel sold inventories to Shangchi and Bucky at cost plus 25 The invoice value was RM80,000 and RM100,000 respectively All of the inventories remained unsold Marvel sold equipment to Shangchi with a profits of RM10,000 during the year The equipment had an estimated useful life of 5 years Full depreciation is charged in the year of acquisition and none in the year of disposal Investment value in Bucky is impaired by RM5,000 as at year end Depreciation is charged on a straight line basis, depreciation is fully charged in the year of acquisition and none in the year of disposal The group adopts revaluation method of accounting Required Prepare the group statement of financial position for Marvel group as at 31 December 2021 Note Show ALL workings 26 marks

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Question 2

The following are the statement of financial position of Marvel Berhad, Shangchi Sdn Bhd and Bucky Sdn Bhd as at 31 December 2021:

	Marvel (RM000)	Shangchi (RM000)	Bucky (RM000)
Investment: Shangchi Sdn Bhd Bucky Sdn Bhd	5,400 850	- -	- -
Non-current assets	12,820	6,640	2,870
Loan receivable from: Shangchi Sdn Bhd Bucky Sdn Bhd	400 200	-
Current assets	2,230	1,260	1,840
Total assets	21,900	7,900	4,710

Ordinary shares	16,000	5,000	1,800
Preference shares	1,100	100	-
Retained profit	2,100	1.300	380
Loan payable to Marvel Berhad	-	400	200
Current liabilities	2,700	1,100	2,330
Total equities & liabilities	21,900	7,900	4,710

Additional Information:

Marvel acquired 80% ordinary shares of Shangchi on 1 January 2019 with consideration transferred of RM5.4 million when the retained profit of Shangchi was RM820,000. Goodwill on acquisition date was calculated as RM584,000. This goodwill was impaired by 50% by 31 December 2021.

Plant belonging to Shangchi had a fair value of RM200,000 more than the carrying value on 1 January 2019. It was estimated that the asset has a useful life of 8 years on this date. Subsequently, this buildings fair value increased by another RM50,000 on 31 December 2021.

Marvel also acquired 40% of ordinary shares of Bucky Sdn Bhd on 1 January 2021. On this date, Buckys building was estimated to have a higher fair value of RM100,000 with a useful life of 20 years. Subsequently this buildings fair value increased by another RM50,000 by 31 December 2021. Retained earnings on this date was recorded as RM200,000.

During the year, Marvel sold inventories to Shangchi and Bucky at cost plus 25%. The invoice value was RM80,000 and RM100,000 respectively. All of the inventories remained unsold.

Marvel sold equipment to Shangchi with a profits of RM10,000 during the year. The equipment had an estimated useful life of 5 years. Full depreciation is charged in the year of acquisition and none in the year of disposal.

Investment value in Bucky is impaired by RM5,000 as at year end. Depreciation is charged on a straight line basis, depreciation is fully charged in the year of acquisition and none in the year of disposal. The group adopts revaluation method of accounting.

Required:

Prepare the group statement of financial position for Marvel group as at 31 December 2021.

Note: Show ALL workings.

[26 marks]