Required: Explain, in detail, each of the four qualitative characteristics. (12 marks) Question 2 (20 marks) Raja purchased 50 percent of debentures of Rani on 1 January x4. Then on 1 April x4, Raja acquired an 80 percent merest in the RM200,000,000 issued ordinary share capital of Rani and 60 million of the 100 million issued aumulative preference shares. Given below are extracts from the trial balance of the two companies as at 31 December x4. Raja Rani RM'000 RM'000 Tumover 600,000 500,000 Cost of sales (180,000) (200,000) Gross profit 420,000 300,000 Operating expenses (240,000) (190,000) Operating profit before tax 180.000 110,000 Dividends from quoted investments 12,000 15,000 Debenture interest (6,000) Debenture interest from Rani 3,000 195,000 119,000 (40,000) (30,000) 155,000 89,000 Taxation Profit for the year goods purchased from Raja, one-quarter of the purchases remain in the closing inventory of Rani. Raja sold goods to Rani of RM40 million after 1 April 4. Raja sells to Rani at cost plus 331/3 percent. Of the Additional information: a. b. Raja RM'000 20,000 Ordinary dividends paid in February x4 Preference dividends paid in February x4 Retained profit b/f at 1 January x4 Rani RM4000 10,000 5,000 (20,000 30,000 Required: i Prepare the group's statement of profit or loss for the year ended 31 December 4. i Calculate the group retained profit as at 31 December 4. i. Calculate the profit attributable to the non-controlling interest and the group retained profits if Rani paid th dividends in December x4. Required: Explain, in detail, each of the four qualitative characteristics. (12 marks) Question 2 (20 marks) Raja purchased 50 percent of debentures of Rani on 1 January x4. Then on 1 April x4, Raja acquired an 80 percent merest in the RM200,000,000 issued ordinary share capital of Rani and 60 million of the 100 million issued aumulative preference shares. Given below are extracts from the trial balance of the two companies as at 31 December x4. Raja Rani RM'000 RM'000 Tumover 600,000 500,000 Cost of sales (180,000) (200,000) Gross profit 420,000 300,000 Operating expenses (240,000) (190,000) Operating profit before tax 180.000 110,000 Dividends from quoted investments 12,000 15,000 Debenture interest (6,000) Debenture interest from Rani 3,000 195,000 119,000 (40,000) (30,000) 155,000 89,000 Taxation Profit for the year goods purchased from Raja, one-quarter of the purchases remain in the closing inventory of Rani. Raja sold goods to Rani of RM40 million after 1 April 4. Raja sells to Rani at cost plus 331/3 percent. Of the Additional information: a. b. Raja RM'000 20,000 Ordinary dividends paid in February x4 Preference dividends paid in February x4 Retained profit b/f at 1 January x4 Rani RM4000 10,000 5,000 (20,000 30,000 Required: i Prepare the group's statement of profit or loss for the year ended 31 December 4. i Calculate the group retained profit as at 31 December 4. i. Calculate the profit attributable to the non-controlling interest and the group retained profits if Rani paid th dividends in December x4