The Statements of Financial Position of Pendant Bad and its subsidiary Solitaire as at 31.12.20X3: Pendant (RM '000) Solitaire (RM '000) Non-current assets Land 56.000 27,000 Building 8,500 9,750 Plant 6,900 3.200 Machineries 3,200 7,000 Furniture & Fixture 400 300 Investment in Solitaire of 30 million ordinary shares 40,000 Research Costs 300 Developments Costs 600 Current assets Inventory 750 420 Trade Receivables 410 Cash 1,200 500 Total assets 117,360 49,450 Equity Ordinary share Preference shares 5% Retained earings 109,000 2,000 5,220 45,000 1,000 2,660 650 Current liabilities Trade payables Other payables Total equities and liabilities 920 220 117,360 140 49,450 Additional information: I 1. Pendant acquired 30 million ordinary shares (75%) in Solitaire on 1.1.20X1 when the retained earnings of Solitaire had a credit balance of RM1,320,000. There were no issuance of shares since acquisition date. 2. During the year, Solitaire sold a machinery to Pendant for the price of RM630,000. Net book value of the machine on the transaction date was RM520,000. The group recognizes depreciation on a straight line basis anvertising the machine over a useful life of 8 years. Full depreciation is recognized in the year of acquisition. 3. Useful life (years) The following are the fair value of assets at the respective dates: Assets NBV (RM1000) Fair value (RM'000) On acquisition date (1.1.20X1) Solitaire: Building 12,000 16.000 On 1.1.20X3 Solitaire Land 27,000 32,000 Plant 4,000 6,000 Furnitures & fixtures 400 300 16 5 All of the fair value adjustments have not been adjusted in the books of Solitaire as at consolidation date. The group uses revaluation model for preparation of consolidated accounts. During the year, Pendant sold inventories to Solitaire at cost plus 25%. The invoiced amount was RM300,000. Solitaire sold off B0% of the inventories by year end. Pendant has billed Solitaire for this transaction and Solitaire has remitted a payment of RM100,000 on 30 December 20x3 which was only received by Pendant on 24 January 20X4. The balances due to and from these companies are recorded as part of trade receivables and trade payables respectively. 5. On the date of acquisition, Solitaire embarked on a Research and Development project. Solitaire has capitalized RM600,000 on the research costs and RM1,200,000 of the development cost. The useful life is 6 years. However Pendant only recognizes the research cost of RM600,000 and does not recognize the development costs of RM1,200,000. The group's depreciation policy is 20% per annum. 6. Partial goodwill was impaired by 50% as at 31.12.20X3. Required: Prepare the consolidated Statement of Financial Position for the group for period ending 31.12.20X3. Show all the relevant workings. The Statements of Financial Position of Pendant Bad and its subsidiary Solitaire as at 31.12.20X3: Pendant (RM '000) Solitaire (RM '000) Non-current assets Land 56.000 27,000 Building 8,500 9,750 Plant 6,900 3.200 Machineries 3,200 7,000 Furniture & Fixture 400 300 Investment in Solitaire of 30 million ordinary shares 40,000 Research Costs 300 Developments Costs 600 Current assets Inventory 750 420 Trade Receivables 410 Cash 1,200 500 Total assets 117,360 49,450 Equity Ordinary share Preference shares 5% Retained earings 109,000 2,000 5,220 45,000 1,000 2,660 650 Current liabilities Trade payables Other payables Total equities and liabilities 920 220 117,360 140 49,450 Additional information: I 1. Pendant acquired 30 million ordinary shares (75%) in Solitaire on 1.1.20X1 when the retained earnings of Solitaire had a credit balance of RM1,320,000. There were no issuance of shares since acquisition date. 2. During the year, Solitaire sold a machinery to Pendant for the price of RM630,000. Net book value of the machine on the transaction date was RM520,000. The group recognizes depreciation on a straight line basis anvertising the machine over a useful life of 8 years. Full depreciation is recognized in the year of acquisition. 3. Useful life (years) The following are the fair value of assets at the respective dates: Assets NBV (RM1000) Fair value (RM'000) On acquisition date (1.1.20X1) Solitaire: Building 12,000 16.000 On 1.1.20X3 Solitaire Land 27,000 32,000 Plant 4,000 6,000 Furnitures & fixtures 400 300 16 5 All of the fair value adjustments have not been adjusted in the books of Solitaire as at consolidation date. The group uses revaluation model for preparation of consolidated accounts. During the year, Pendant sold inventories to Solitaire at cost plus 25%. The invoiced amount was RM300,000. Solitaire sold off B0% of the inventories by year end. Pendant has billed Solitaire for this transaction and Solitaire has remitted a payment of RM100,000 on 30 December 20x3 which was only received by Pendant on 24 January 20X4. The balances due to and from these companies are recorded as part of trade receivables and trade payables respectively. 5. On the date of acquisition, Solitaire embarked on a Research and Development project. Solitaire has capitalized RM600,000 on the research costs and RM1,200,000 of the development cost. The useful life is 6 years. However Pendant only recognizes the research cost of RM600,000 and does not recognize the development costs of RM1,200,000. The group's depreciation policy is 20% per annum. 6. Partial goodwill was impaired by 50% as at 31.12.20X3. Required: Prepare the consolidated Statement of Financial Position for the group for period ending 31.12.20X3. Show all the relevant workings