Statement of Financial Position as at 31 December 2018 Alpha Bhd RM 1000 Beta Bhd RM 1000 Gamma Bhd RM 1000 115,200 93,000 Non-current assets Property, plant and equipment Investment in Beta Bhd Investment in Gamma Bhd Investment in associate Other long-term investment 236,410 140,000 13,100 2,800 15,000 52,100 25,000 10,000 I Current assets Inventories Trade receivable Bank Total assets 15,600 29,000 25,730 477,640 20,000 10,000 12,010 234,310 7,000 18,000 25,640 153,640 60,000 Equity Ordinary shares 10% Preference shares Retained earnings Asset revaluation reserves 200,000 7,000 221,900 5,000 120,000 20,000 51,510 11,000 71,140 Non-current liabilities 8% Redeemable Preference shares 10% Debentures 600 200 15,640 500 Current liabilities Trade payables Tax payables Total equity and liabilities 20,100 8,000 477,640 25,000 6,000 234,310 19,000 3,000 153,640 Additional information: 1. Number of ordinary shares of each company are as follows: Alpha Bhd Beta Bhd Gamma Bhd 200,000,000 120,000,000 60,000,000 2. Investment in subsidiaries: i. Alpha Bhd acquired 75% of Beta Bhd's ordinary shares on 1 July 2014 by paying cash of RM140,000,000. Retained profit of Beta Bhd on the acquisition date was reported at RM30,100,000. The fair value of non-depreciable asset of Beta Bhd was RM5,000,000 exceed its carrying value. No adjustment has been made by Beta Bhd as to account for the value. 11. Beta Bhd acquired 60% of the issued ordinary shares in Gamma Bhd on 1 January 2015. As at the acquisitior date, the retained profit of Gamma Bhd was RM22,500,000. Cost of investment in Gamma Bhd amounted to RM52,100,000. III. Alpha Bhd acquired 20% of the issued ordinary shares of Gamma Bhd on 1 January 2016 for consideration of RM13,100,000. On this date, the retained profit of Gamma was RM42,000,000 3. Alpha Bhd also acquired 40% of the ordinary shares in Power Bhd company on 1 June 2016. The reported retained profit of Power Bhd as at the acquisition date was at RM1,500,000. As at 31 December 2018, the retained profit of Power Bhd was amounted to RM3,200,000. There is no other transaction incurred during the year 2018. 4. In June 2018, Alpha Bhd sold a plant with carrying amount of RM230,000,000 for RM280,000,000. On this date, the remaining useful life of the plant was five years. It is the group policy to depreciate its plants on a straight line method with a full year's depreciation provided in the year of purchase and none in the year of disposal. 5. During the year, Gamma Bhd sold goods costing RM800,000 to Alpha Bhd for RM1,000,000 at a mark-up of 20%. As at the year-end, 25% of these goods are remained unsold 6. Included in the trade receivable of Alpha Bhd is RM2,000,000 due from Beta Bhd. 7 It is the group's policy to measure the non-controlling interest at the proportionate interest in the file aftha nataccate af the median the date meanisition 7. It is the group's policy to measure the non-controlling interest at the proportionate interest in the fair values of the net assets of the subsidiary on the date of acquisition. Required: Prepare the Consolidated Statement of Financial Position of Alpha Bhd and its group of companies as at 31 December 2018. Disclose all relevant workings. (30 marks) (CLO2:PLO6:06) Statement of Financial Position as at 31 December 2018 Alpha Bhd RM 1000 Beta Bhd RM 1000 Gamma Bhd RM 1000 115,200 93,000 Non-current assets Property, plant and equipment Investment in Beta Bhd Investment in Gamma Bhd Investment in associate Other long-term investment 236,410 140,000 13,100 2,800 15,000 52,100 25,000 10,000 I Current assets Inventories Trade receivable Bank Total assets 15,600 29,000 25,730 477,640 20,000 10,000 12,010 234,310 7,000 18,000 25,640 153,640 60,000 Equity Ordinary shares 10% Preference shares Retained earnings Asset revaluation reserves 200,000 7,000 221,900 5,000 120,000 20,000 51,510 11,000 71,140 Non-current liabilities 8% Redeemable Preference shares 10% Debentures 600 200 15,640 500 Current liabilities Trade payables Tax payables Total equity and liabilities 20,100 8,000 477,640 25,000 6,000 234,310 19,000 3,000 153,640 Additional information: 1. Number of ordinary shares of each company are as follows: Alpha Bhd Beta Bhd Gamma Bhd 200,000,000 120,000,000 60,000,000 2. Investment in subsidiaries: i. Alpha Bhd acquired 75% of Beta Bhd's ordinary shares on 1 July 2014 by paying cash of RM140,000,000. Retained profit of Beta Bhd on the acquisition date was reported at RM30,100,000. The fair value of non-depreciable asset of Beta Bhd was RM5,000,000 exceed its carrying value. No adjustment has been made by Beta Bhd as to account for the value. 11. Beta Bhd acquired 60% of the issued ordinary shares in Gamma Bhd on 1 January 2015. As at the acquisitior date, the retained profit of Gamma Bhd was RM22,500,000. Cost of investment in Gamma Bhd amounted to RM52,100,000. III. Alpha Bhd acquired 20% of the issued ordinary shares of Gamma Bhd on 1 January 2016 for consideration of RM13,100,000. On this date, the retained profit of Gamma was RM42,000,000 3. Alpha Bhd also acquired 40% of the ordinary shares in Power Bhd company on 1 June 2016. The reported retained profit of Power Bhd as at the acquisition date was at RM1,500,000. As at 31 December 2018, the retained profit of Power Bhd was amounted to RM3,200,000. There is no other transaction incurred during the year 2018. 4. In June 2018, Alpha Bhd sold a plant with carrying amount of RM230,000,000 for RM280,000,000. On this date, the remaining useful life of the plant was five years. It is the group policy to depreciate its plants on a straight line method with a full year's depreciation provided in the year of purchase and none in the year of disposal. 5. During the year, Gamma Bhd sold goods costing RM800,000 to Alpha Bhd for RM1,000,000 at a mark-up of 20%. As at the year-end, 25% of these goods are remained unsold 6. Included in the trade receivable of Alpha Bhd is RM2,000,000 due from Beta Bhd. 7 It is the group's policy to measure the non-controlling interest at the proportionate interest in the file aftha nataccate af the median the date meanisition 7. It is the group's policy to measure the non-controlling interest at the proportionate interest in the fair values of the net assets of the subsidiary on the date of acquisition. Required: Prepare the Consolidated Statement of Financial Position of Alpha Bhd and its group of companies as at 31 December 2018. Disclose all relevant workings. (30 marks) (CLO2:PLO6:06)