Question
The following are the statements of comprehensive income for Chucky Bhd and Annabelle Sdn Bhd for year ended 31 December 2021: Chucky ($000) Annabelle ($000)
The following are the statements of comprehensive income for Chucky Bhd and Annabelle Sdn Bhd for year ended 31 December 2021:
|
| Chucky ($000) | Annabelle ($000) |
| Sales | 9,500 | 3,200 |
| (-) Cost of sales | (4,800) | (1,400) |
| Gross profit | 4,700 | 1,800 |
| (-) Operating expenses | (1,600) | (700) |
| (+) Other income | 300 | - |
| Profit before taxation | 3,400 | 1,100 |
| (-) Taxation | (900) | (200) |
| Profit after taxation | 2,500 | 900 |
| Retained earnings as at 1 January 2021 | 5,900 | 1,800 |
| Dividends declared in December 2021
|
800 80 |
300 20 |
Additional information:
- Chucky acquired 60% of the RM10 million ordinary shares and 25% of $400,000 of preference shares issued by Annabelle on 1 January 2021. The bargain purchase upon acquisition was determined to be $700,000. This gain has not been recorded.
- On the date of acquisition, machinery belonging to Annabelle has a fair value of $100,000 less than the carrying value. The useful life of the plant was estimated to be 5 years. The group depreciates on a straight line basis. There are no other reserves.
- During the year Chucky sold to Annabelle an equipment with the carrying value of $60,000 for $80,000 recording the gain made as part of other income. The equipment was estimated to have a useful life of 5 years. Full depreciation is charged in the year of acquisition and none in the year of disposal.
- Chucky provided technical services and consultation to Annabelle and charged $140,000 fee to Annabelle. Chucky has recorded this as part of other income. Annabelle has included this fee as part of its operating expenses.
- During the year, Annabelle sold inventories to Chucky with the invoice value of $500,000 at cost plus 25%. 70% of these inventories remained unsold as at year end.
Required:
- Prepare the consolidated statement of comprehensive income for Chucky Berhads group for year ended 31 December 2021.
(11 marks)
- Prepare an extract of the consolidated statement of changes in equity for Chucky Berhads group for year ended 31 December 2021.
Note: Show ALL relevant workings.
(7 marks)
[18 marks]
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