QUESTION 24 < HH Pte Ltd (HH) acquired 80% of SS Pte Ltd (SS) on 1 January 20x2 and 40% of AA Pte Ltd (AA) on 1 January 20x5. The following are the summarised statements of financial position of the respective companies:+ Statements of Financial Position as at 31 December 20x9 t HH SS AA S'm $'m S'm Non-current Assets Property, plant and equipment 10,962 11,560 9,285 Investment in SS Pte Ltd (at cost) 10,490 Investment in AA Pte Ltd (at cost) 4,128 0 0 0+ 25,580 11,560 9,285 Current Assets+ Inventories 682 8,196 650 Trade and other receivables 2,510 4,200 2,160 Cash and cash equivalents 20,551 14,704 10,810 23,743 27,100 13,620 Total assets 49,323 38,660 22,905 Additional information: < 1. The Group, consisting of HH and SS, adopts the proportionate share of the fair value of the subsidiaries' identifiable net assets in measuring any non-controlling interest. t 2. 3. " 4. t 5. " 6. 7. " 8. Ignore all income tax and deferred tax effects, if any, arising from business combinations. There has been no change in the share capital of all the above companies since the respective acquisition dates. < When HH acquired SS on 1 January 202:- < - The amount of SS's retained earnings were $5,620m. The net book value of SS's warehouse exceeded its fair value by $500m. As at that date, the remaining useful life of the warehouse was 25 years. The warehouse is still held by SS as at 31 December 20x9. The fair value of SS's inventories exceeded the carrying amount by $20m, and the relevant inventories were sold during the financial year ended 31 December 20x2.+ On 1 January 20x9, SS sold an office building, with a carrying amount of $750m to HH at a gain of $240m, and the remaining useful life as at that date was 24 years. As at 31 December 20x9, HH had settled half of the amount outstanding arising from the sale, and the office building was still held and used by HH as at 31 December 20x9. < When HH purchased its stake in AA on 1 January 20x5, the value of AA's retained earnings were at $3,520m, while the fair value of AA's manufacturing plant exceeded its net book value by $300m. Remaining useful life of the plant was 10 years as at acquisition date. < Assume that a shareholding of more than 50% gives rise to control, while a shareholding between 20% and 50% gives rise to significant influence. The Group adopts the cost model and straight-line method to depreciate its property, plant and equipment, and records depreciation as an operating expense. Assume that the residual value of its property, plant and equipment is zero. Required:+ Prepare the consolidated statement of financial position of HH Group as at 31 December 20x9. Show supporting workings where necessary. Marks will be awarded for appropriate workings. (50 marks)+ < Equity Share capital 9,522 4,100 Retained earnings 32,914 25,000 6,500+ 13,810+ 42,436 29,100 20,310+ Current Liabilities Trade and other payables 5,356 9,020 1,710 " Provision for tax 1,531 540 885 6,887 9,560 2,595 Total Equity and Liabilities 49,323 38,660 22,905