Question 5 Happy Berhad, a public limited company, acquired 30% of the ordinary share capital of Fabulous Berhad at a cost of RM14 milion on 1 January 2017. The share capital of Fabulous Berhad has not changed since acquisition when the retained earnings of Fabulous were RM9 million. The financial statements of Fabulous is as following:- Income Statement For The Year Ended 31 December 2017 RM'million 217 Cost of sales Gross profit Other income 34 12 (17) Finance costs Profit before tax Income tax expense Profit for the year Ordinary dividend- paid Statement of Financial Position At 31 December 2017 Property, plant and equipment Current assets 37 31 Equity Ordinary shares of RM1 Retained eamings 10 36 10 12 Current liabilities Other information included: At 1 January 2017 the following fair values were attributed to the net assets of Fabulous but not incorporated in its accounting records. Fair values are to be taken into account when assessing any goodwill arising on acquisition. RM'million 30 Property, plant and equipment (carrying value Current assets Current liabilities (i) The policy of all companies in the Happy Group is to depreciate property, plant and equipment at 20% per annum on the straight line basis Calculate the goodwill arising from acquisition of Fabulous and show how the investment in Fabulous would be stated in the consolidated statement of financial position of the Happy Group under MFRS 128 Investments in associates and joint ventures, for the year ended 31 December 2017 on the assumption that Fabulous is an (8 marks)