Statements of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019 Biolnno Bhd BioTech Bhd RM1000 RM"000 RM1000 RM"000 Sales 22,000 10,000 Opening inventories 4,250 2,500 Purchases 10,000 5,000 14,250 7,500 Closing inventories (7,000) (7,250) (5,000) (2,500) Gross profit 14,750 7,500 Operating expenses (990) (480) Operating profit 13,760 7,020 Finance costs (200) (150) Dividend income (gross) 914 Profit before taxation 14,474 6,870 Taxation (950) (550) Profit for the year 13,524 6,320 Movements in retained profits: Retained profits brought forward Profit for the year Available for appropriation Dividends paid (net) Retained profits carried forward 6,750 13,524 20,274 (1,200) 5,000 6,320 11,320 (800) 19,074 10,520 Statements of Financial Position as at 31 December 2019 Biolnno Bhd BioTech Bhd RM'000 RM '000 RM '000 RM '000 Property, Plant & Equipment 15,000 10,950 Investments in BioTech Bhd 18,000 33,000 10,950 Inventories 7,000 5,000 Trade receivables 6,854 3,700 Other receivables 4,020 1,250 Bank 8,750 26,624 1,920 11,870 59,624 22,820 Share capital of RM1 each Retained profits 25,000 19,074 5,000 10,520 44,074 15,520 Long-term loans Deferred taxation 6,000 1,450 2,000 1,000 7,450 3,000 Trade payables Other payables Taxation Bills payable 3,300 1,600 1,550 1,650 1,500 800 400 1600 8,100 59,624 4,300 22,820 Additional information: a. It is the group's policy to measure non-controlling interest at acquisition-date fair value. Ignore tax effects of unrealised profits arising from intragroup transactions and on fair value adjustments. b. At the acquisition date, the freehold land of BioTech Bhd has a fair value of RM4,500,000. The land which is included in property, plant, and equipment of BioTech Bhd was recorded at cost of RM1,500,000. No adjustment has been made in the accounts to reflect the fair value. C. During the year 2019, BioTech Bhd transferred inventories to Biolnno Bhd for RM3,000,000 and RM800,000 of these inventories remained unsold by year-end. The corresponding intragroup sales and closing inventories for the 2018 financial year were RM5,000,000 and RM600,000, respectively. The profit margin to BioTech Bhd was 20% on selling price. d. Biolnno Bhd manufactures factory machine for carpet industry. During the year 2018, Biolnno Bhd sold 30 factory machines to BioTech Bhd for the latter's use as property, plant, and equipment. The total transfer price is RM2,300,000 of which Biolnno Bhd recorded a RM1,000,000 profit for the transfer. The group depreciates such assets at 10% rate per annum on cost, charging full year's depreciation in the year of purchase and none in the year of disposal. e. The long term loans of BioTech Bhd. includes a loan from Biolnno Bhd. amounting to RM100,000 Which is recorded in other receivables account in BioTech's book. f. Trade receivables of Biolnno Bhd include RM400,000 due from BioTech Bhd. g. Dividends (gross) received by Biolnno Bhd are dividends received from BioTech Bhd. Tax rate is 30%. Required: i. Determine the amount of goodwill on acquisition. (8 marks) ii. Determine the share of non-controlling interest in the realized profit for the financial year end 2019. (8 marks) iii. Prepare the Consolidated Statements of Profit or Loss for Biolnno Bhd. for the year ended 31 December 2019. (12 marks) iv. Prepare the Consolidated Statement of Financial Position for Biolnno Bhd for the year ended 31 December 2019. (12 marks) Statements of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019 Biolnno Bhd BioTech Bhd RM1000 RM"000 RM1000 RM"000 Sales 22,000 10,000 Opening inventories 4,250 2,500 Purchases 10,000 5,000 14,250 7,500 Closing inventories (7,000) (7,250) (5,000) (2,500) Gross profit 14,750 7,500 Operating expenses (990) (480) Operating profit 13,760 7,020 Finance costs (200) (150) Dividend income (gross) 914 Profit before taxation 14,474 6,870 Taxation (950) (550) Profit for the year 13,524 6,320 Movements in retained profits: Retained profits brought forward Profit for the year Available for appropriation Dividends paid (net) Retained profits carried forward 6,750 13,524 20,274 (1,200) 5,000 6,320 11,320 (800) 19,074 10,520 Statements of Financial Position as at 31 December 2019 Biolnno Bhd BioTech Bhd RM'000 RM '000 RM '000 RM '000 Property, Plant & Equipment 15,000 10,950 Investments in BioTech Bhd 18,000 33,000 10,950 Inventories 7,000 5,000 Trade receivables 6,854 3,700 Other receivables 4,020 1,250 Bank 8,750 26,624 1,920 11,870 59,624 22,820 Share capital of RM1 each Retained profits 25,000 19,074 5,000 10,520 44,074 15,520 Long-term loans Deferred taxation 6,000 1,450 2,000 1,000 7,450 3,000 Trade payables Other payables Taxation Bills payable 3,300 1,600 1,550 1,650 1,500 800 400 1600 8,100 59,624 4,300 22,820 Additional information: a. It is the group's policy to measure non-controlling interest at acquisition-date fair value. Ignore tax effects of unrealised profits arising from intragroup transactions and on fair value adjustments. b. At the acquisition date, the freehold land of BioTech Bhd has a fair value of RM4,500,000. The land which is included in property, plant, and equipment of BioTech Bhd was recorded at cost of RM1,500,000. No adjustment has been made in the accounts to reflect the fair value. C. During the year 2019, BioTech Bhd transferred inventories to Biolnno Bhd for RM3,000,000 and RM800,000 of these inventories remained unsold by year-end. The corresponding intragroup sales and closing inventories for the 2018 financial year were RM5,000,000 and RM600,000, respectively. The profit margin to BioTech Bhd was 20% on selling price. d. Biolnno Bhd manufactures factory machine for carpet industry. During the year 2018, Biolnno Bhd sold 30 factory machines to BioTech Bhd for the latter's use as property, plant, and equipment. The total transfer price is RM2,300,000 of which Biolnno Bhd recorded a RM1,000,000 profit for the transfer. The group depreciates such assets at 10% rate per annum on cost, charging full year's depreciation in the year of purchase and none in the year of disposal. e. The long term loans of BioTech Bhd. includes a loan from Biolnno Bhd. amounting to RM100,000 Which is recorded in other receivables account in BioTech's book. f. Trade receivables of Biolnno Bhd include RM400,000 due from BioTech Bhd. g. Dividends (gross) received by Biolnno Bhd are dividends received from BioTech Bhd. Tax rate is 30%. Required: i. Determine the amount of goodwill on acquisition. (8 marks) ii. Determine the share of non-controlling interest in the realized profit for the financial year end 2019. (8 marks) iii. Prepare the Consolidated Statements of Profit or Loss for Biolnno Bhd. for the year ended 31 December 2019. (12 marks) iv. Prepare the Consolidated Statement of Financial Position for Biolnno Bhd for the year ended 31 December 2019. (12 marks)