The following are the Statements of Financial Position of Practical and Radical as at 31 December 20X5: Practical (RM'000) Radical (RM 000) Assets Investment in Radical: Ordinary shares 11,840 Cumulative Preference shares 800 Redeemable Preference shares 300 Non-current assets: Land 11,600 7.200 Building 8,400 2,400 Machineries 3,600 1.800 Equipment 1,100 330 Motor vehicle 260 190 Current assets: Inventories 3,991 987 Trade receivables 4,022 1,011 Other receivables 545 223 Cash in bank 5,808 1,346 Total 52,266 15,487 33,400 Equities & Liabilities Ordinary shares 5% Cumulative Preference shares 6% Redeemable preference shares Revaluation reserve Retained earnings but Profit for the year (net of dividend) Current liabilities: Trade payables Total 10.550 1.000 500 1,090 1,020 340 3,200 11,240 520 3,906 52,266 987 15,487 Additional information: 1. Practical acquired 6,400,000 units (80%) of ordinary shares in Radical on 1 April 20X5. This investment was paid with a cash payment of RM11.84 million. This payment has been recorded in the books of Practical. Practical will also pay a contingent consideration of RM2.16 million if the profit of Radical increased by more than 15% in year ending 20X5. On 25 February 20X5, Radical paid a dividend of RM20,000 to its shareholders. Cost of capital is 8% per annum. 2. Practical also acquired 80% of cumulative preference shares and 60% of redeemable preference shares in Radical on 1 January 20X5 via payment of cash which has been fully recorded in the books, 3. On the date of acquisition, building belonging to Radical is estimated to have a fair value of RM3.225 million but a carrying value of RM2.58 million with useful life of 129 months on that date. A machinery belonging to Radical was estimated to have a lower fair value of RM60.000 due to technology change. Useful life of the machine is 60 months on 1 April 20Xs. The group uses straight line depreciation method for all its assets. All fair value adjustments on assets have not been recorded. There are no acquisitions or disposals of non-current assets during the year. The group uses revaluation model to prepare its accounts. 4. During the year, Radical sold inventories to Practical with the invoice price of RM120,000 at cost plus 25%. 70% of the inventories have been sold. Both companies have recorded this inventory sale transaction in trade payables and trade receivables respectively. On 30 December 20X5, Practical remitted RM50,000 as partial payment to this transaction, but the payment was only received on 2 January 20x6. 5. In December 20X5, the following dividends were declared but has not been recorded in the books: Dividends declared Radical Ordinary shares 2 sen/share Cumulative Preference shares Redeemable preference shares Half year Ful year 6. The group uses partial goodwill to prepare its accounts. Goodwill was impaired by RM10,000 hy wear end. Required: Prepare the consolidated statement of financial position for the group as at 31 December 20X5. The following are the Statements of Financial Position of Practical and Radical as at 31 December 20X5: Practical (RM'000) Radical (RM 000) Assets Investment in Radical: Ordinary shares 11,840 Cumulative Preference shares 800 Redeemable Preference shares 300 Non-current assets: Land 11,600 7.200 Building 8,400 2,400 Machineries 3,600 1.800 Equipment 1,100 330 Motor vehicle 260 190 Current assets: Inventories 3,991 987 Trade receivables 4,022 1,011 Other receivables 545 223 Cash in bank 5,808 1,346 Total 52,266 15,487 33,400 Equities & Liabilities Ordinary shares 5% Cumulative Preference shares 6% Redeemable preference shares Revaluation reserve Retained earnings but Profit for the year (net of dividend) Current liabilities: Trade payables Total 10.550 1.000 500 1,090 1,020 340 3,200 11,240 520 3,906 52,266 987 15,487 Additional information: 1. Practical acquired 6,400,000 units (80%) of ordinary shares in Radical on 1 April 20X5. This investment was paid with a cash payment of RM11.84 million. This payment has been recorded in the books of Practical. Practical will also pay a contingent consideration of RM2.16 million if the profit of Radical increased by more than 15% in year ending 20X5. On 25 February 20X5, Radical paid a dividend of RM20,000 to its shareholders. Cost of capital is 8% per annum. 2. Practical also acquired 80% of cumulative preference shares and 60% of redeemable preference shares in Radical on 1 January 20X5 via payment of cash which has been fully recorded in the books, 3. On the date of acquisition, building belonging to Radical is estimated to have a fair value of RM3.225 million but a carrying value of RM2.58 million with useful life of 129 months on that date. A machinery belonging to Radical was estimated to have a lower fair value of RM60.000 due to technology change. Useful life of the machine is 60 months on 1 April 20Xs. The group uses straight line depreciation method for all its assets. All fair value adjustments on assets have not been recorded. There are no acquisitions or disposals of non-current assets during the year. The group uses revaluation model to prepare its accounts. 4. During the year, Radical sold inventories to Practical with the invoice price of RM120,000 at cost plus 25%. 70% of the inventories have been sold. Both companies have recorded this inventory sale transaction in trade payables and trade receivables respectively. On 30 December 20X5, Practical remitted RM50,000 as partial payment to this transaction, but the payment was only received on 2 January 20x6. 5. In December 20X5, the following dividends were declared but has not been recorded in the books: Dividends declared Radical Ordinary shares 2 sen/share Cumulative Preference shares Redeemable preference shares Half year Ful year 6. The group uses partial goodwill to prepare its accounts. Goodwill was impaired by RM10,000 hy wear end. Required: Prepare the consolidated statement of financial position for the group as at 31 December 20X5