Question
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:
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.
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