Question6 Jaya Berhad has many investments, but before 2017 none of these investments met the criteria for consolidation as a subsidiary One of these older investments was a RM250 millon, 12% loan to Cahaya Berhad which was made in 2014 and is not due to be repaid untl 2019 On 1st November 2017, Jaya purchased 70% of the equity of Cahaya for RM500 milion. The consideration was 50 million RM1 equity shares in Jaya with a fair value of Noted below are the draft income statements and movement in retained earnings for Jaya and its subsidiary Cahaya for the year ending 31st December 2017 along with the draft statements of financial position as at 31st December 2017 Statement of Comprehensive Income for the Year Ended 31 December 2017 RM'million 0,000 RM'million Cost of sales Gross Profit Interest on loan to Cahaya Other Investment Income Other Operating expenses Finance Costs Profit before tax Income Tax Expenses Profit for the year 4,400 30 728 1.180 Opening retained eamings Proft for the year Dividends paid Closing retained earnings 850 503 Statement of Financial Position as at 31 December 2017 RM'million Non current assets Property, plant and equipment Loan to Cahaya Other Investments 773 650 1,623 Current assets Total assets Equity and liabilities Equity shares of RM1.00 each Retained eamings Other components of equity 100 580 1,150 93 680 Non current liabilities Question6 Jaya Berhad has many investments, but before 2017 none of these investments met the criteria for consolidation as a subsidiary One of these older investments was a RM250 millon, 12% loan to Cahaya Berhad which was made in 2014 and is not due to be repaid untl 2019 On 1st November 2017, Jaya purchased 70% of the equity of Cahaya for RM500 milion. The consideration was 50 million RM1 equity shares in Jaya with a fair value of Noted below are the draft income statements and movement in retained earnings for Jaya and its subsidiary Cahaya for the year ending 31st December 2017 along with the draft statements of financial position as at 31st December 2017 Statement of Comprehensive Income for the Year Ended 31 December 2017 RM'million 0,000 RM'million Cost of sales Gross Profit Interest on loan to Cahaya Other Investment Income Other Operating expenses Finance Costs Profit before tax Income Tax Expenses Profit for the year 4,400 30 728 1.180 Opening retained eamings Proft for the year Dividends paid Closing retained earnings 850 503 Statement of Financial Position as at 31 December 2017 RM'million Non current assets Property, plant and equipment Loan to Cahaya Other Investments 773 650 1,623 Current assets Total assets Equity and liabilities Equity shares of RM1.00 each Retained eamings Other components of equity 100 580 1,150 93 680 Non current liabilities
