QUESTION:

On $1$ January $2022,$ Kue Bhd acquired $6,020,000$ of the $8,600,000$ ordinary

shares in Jaffa Bhd by transferring RM$14,605,000$ cash.

On $1$ January $2023,$ Kue acquired $400,000$ of the $1,000,000$ ordinary shares in

Tatin Bhd by issuing $600,000$ ordinary shares. The fair value of Kue Bhd$\text{'}$s shares

on $1$ January $2023$ was RM$2.$ The investment did not give Kue Bhd a control over

Tatin Bhd$.$

Given below are the Statements of Profit or Loss and Other Comprehensive

Income Kue Bhd$,$ Jaffa Bhd and Tatin Bhd for the year ended $31$ December

Additional information:

$($i$)$ At the date of acquisition, the fair value of net asset of Jaffa Bhd was

RM$10,400,000$ with the exception of the following fair value changes:

One of the plant had a fair value of RM$750,000$ higher than its carrying

amount. The remaining life of the plant at the date of acquisition was six

years.

Jaffa Bhd had a contingent liability which Kue Bhd estimate to have an

increase of fair value at RM$80,000.$ This has not changes as at $31$

December $2023.$

Jaffa Bhd has not incorporated these fair value in its financial statements.

$($ii$)$ Jaffa Bhd has a contract to supply monthly goods of RM$45,000$ per month to

Kue Bhd$.$ Jaffa Bhd made a mark$-$up of $20\%$ on these sales. As at $31$

December $2023,40\%$ of these goods were sold by Kue Bhd$.$

$($iii$)$ Included in the finance income is a dividend received from the equity

investment in Jaffa Bhd$.$ Jaffa Bhd declared and paid ordinary dividend of

RM$450,000$ for the year ended $31$ December $2023.$

$($iv$)$ During the year ended $2023.$ Kue Bhd sold goods to Tatin Bhd for

RM$580,000$ at a profit margin of $10\%.$ Tatin Bhd managed to sell $80\%$ of

these good as at $31$ December $2023.$

$($v$)$ Kue Bhd has charged legal fees and advices of RM$44,000$ to the Jaffa Bhd$.$

$($vi$)$ On $1$ August $2023,$ Jaffa Bhd sold a large machine 'Zen X$\text{'}$ with a carrying

amount of RM$120,000$ for RM$192,000$ to Kue Bhd$.$ The remaining useful life

of this machinery is six years.

$($vii$)$ On $15$ December $2023,$ Tatin Bhd declared and paid RM$420,000$ ordinary

dividends to its shareholders.

$($viii$)$ Income and expenses accrued evenly throughout the year.

$($ix$)$ The non$-$controlling interest in Jaffa Bhd was valued at its proportionate

share of the net assets of the subsidiary on the acquisition date. At the end

of $2023,$ the goodwill impairment review showed a loss of $10\%.$ The

investment in Tatin Bhd was impaired at RM$22,000.$

Required:

Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive

Income for Kue Group Bhd for the year ended $31$ December $2023.$