Section A (Calculation) QUESTION 1 (30 marks) a) As a financial controller, you are analysing the potential purchase of 100% Whatapps Berhad by your company; Facebook Berhad. Your company, Facebook Berhad pays in cash RM240,000 for Whatapps Berhad and the 40% cash is obtained via issuing new share and reaming via issuing bond. Facebook Whatapps Whatapps Historical Value Historical Value Fair Value RM'000 RM'000 RM'000 Current Assets 80 60 60 Land 100 60 Plants, net 80 30 35 Equipment, net 70 Cash 60 10 10 Total assets 390 160 195 40 20 30 40 40 240 150 120 Current liabilities Shareholders' equity Total Liabilities and equity 390 160 Required: Prepare a consolidated balance sheet AND inter-company transaction. (26 marks) b) What are the major accounting distortions for debt securities investment AND how to manage the threat? (4 marks)