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QUESTION: On 1 January 2 0 2 2 , Kue Bhd acquired 6 , 0 2 0 , 0 0 0 of the 8 ,

QUESTION:
On 1 January 2022, Kue Bhd acquired 6,020,000 of the 8,600,000 ordinary
shares in Jaffa Bhd by transferring RM14,605,000 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's shares
on 1 January 2023 was RM2. 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
RM10,400,000 with the exception of the following fair value changes:
One of the plant had a fair value of RM750,000 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 RM80,000. 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 RM45,000 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
RM450,000 for the year ended 31 December 2023.
(iv) During the year ended 2023. Kue Bhd sold goods to Tatin Bhd for
RM580,000 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 RM44,000 to the Jaffa Bhd.
(vi) On 1 August 2023, Jaffa Bhd sold a large machine 'Zen X' with a carrying
amount of RM120,000 for RM192,000 to Kue Bhd. The remaining useful life
of this machinery is six years.
(vii) On 15 December 2023, Tatin Bhd declared and paid RM420,000 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 RM22,000.
Required:
Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive
Income for Kue Group Bhd for the year ended 31 December 2023.
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