Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019 Donut Bhd RM 1000 109,000 (49,000) 60,000 650 Cake Bhd RM 1000 65,000 (35,000) 30,000 Candy Bhd RM 1000 54,000 (33,000) 21,000 Sales Cost of Sales Gross profit Income from investments Other income Operating expenses Finance costs Profit before taxation Taxation Profit after taxation (6,000) (4,800) 49,850 (11,200) 38,650 100 (4,800) (2,500) 22,800 (6,000) 16,800 (4,100) (2,200) 14,700 (2,500) 12,200 Other comprehensive income Revaluation surplus Total comprehensive income 100 38,750 150 16,950 700 12,900 Ordinary dividend payable Retained profit brought forward 900 160,000 800 65,000 200 25,000 Additional information: 1. Donut Bhd acquired 60% of the 60 million issued ordinary shares of Cake Bhd on 1 July 2013 for RM55 million. On this date, the retained profit of Cake Bhd was RM10 million 2. On 1 April 2019, Donut Bhd bought an additional 20% of the issued ordinary shares of Cake Bhd for RM27.4 million. Cake Bhd's fair value of net assets as at 1 July 2018 was RM120 million 3. As the business is expanding, Donut Bhd acquired another company, Candy Bhd on 1 July 2018. A total of 7 million out of the 10 million issued ordinary shares of Candy Bhd was acquired at a cost of RM15 million. At that date, the retained profit of Candy Bhd was RM12 million 4. During the year, Donut Bhd sold goods to Candy Bhd for RM5 million. Another RM1,5 million of the goods are remained in the inventory of Candy Bhd at the end of the year. Apart of that, beginning inventory of Candy Bhd amounting to RM2 million is bought from Donut Bhd in the previous year. All sales are invoiced at a profit of 20% on sales, 3. Donut Bhd has recognized its share of dividends from Cake Bhd and Candy Bhd. 6. All expenses and revenue are deemed to accrue evenly throughout the year. 7 Policy of the group is to measure non-controlling interests at their proportionate interest in the value of the net assets of the subsidiary. Required: Calculate the gain or loss from the second acquisition of Cake Bhd on 1 April 2019. (5 marks) (CLO2:PL06:04) a b. Construct the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019. (22 marks) (CLO2.PL06:06) C Determine the group retained profit balance as at 30 June 2019. (3 marks) (CLO2:PLO6:04) Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019 Donut Bhd RM 1000 109,000 (49,000) 60,000 650 Cake Bhd RM 1000 65,000 (35,000) 30,000 Candy Bhd RM 1000 54,000 (33,000) 21,000 Sales Cost of Sales Gross profit Income from investments Other income Operating expenses Finance costs Profit before taxation Taxation Profit after taxation (6,000) (4,800) 49,850 (11,200) 38,650 100 (4,800) (2,500) 22,800 (6,000) 16,800 (4,100) (2,200) 14,700 (2,500) 12,200 Other comprehensive income Revaluation surplus Total comprehensive income 100 38,750 150 16,950 700 12,900 Ordinary dividend payable Retained profit brought forward 900 160,000 800 65,000 200 25,000 Additional information: 1. Donut Bhd acquired 60% of the 60 million issued ordinary shares of Cake Bhd on 1 July 2013 for RM55 million. On this date, the retained profit of Cake Bhd was RM10 million 2. On 1 April 2019, Donut Bhd bought an additional 20% of the issued ordinary shares of Cake Bhd for RM27.4 million. Cake Bhd's fair value of net assets as at 1 July 2018 was RM120 million 3. As the business is expanding, Donut Bhd acquired another company, Candy Bhd on 1 July 2018. A total of 7 million out of the 10 million issued ordinary shares of Candy Bhd was acquired at a cost of RM15 million. At that date, the retained profit of Candy Bhd was RM12 million 4. During the year, Donut Bhd sold goods to Candy Bhd for RM5 million. Another RM1,5 million of the goods are remained in the inventory of Candy Bhd at the end of the year. Apart of that, beginning inventory of Candy Bhd amounting to RM2 million is bought from Donut Bhd in the previous year. All sales are invoiced at a profit of 20% on sales, 3. Donut Bhd has recognized its share of dividends from Cake Bhd and Candy Bhd. 6. All expenses and revenue are deemed to accrue evenly throughout the year. 7 Policy of the group is to measure non-controlling interests at their proportionate interest in the value of the net assets of the subsidiary. Required: Calculate the gain or loss from the second acquisition of Cake Bhd on 1 April 2019. (5 marks) (CLO2:PL06:04) a b. Construct the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019. (22 marks) (CLO2.PL06:06) C Determine the group retained profit balance as at 30 June 2019. (3 marks) (CLO2:PLO6:04)