The summarised financial statements for three companies at 31 March 2012 are:

Statements of Financial Position as at 31 March 2012 Assets RM000

Taurus RM000

227,300 -

227,300

55,650 -

-

37,000

31,150 351,100

180,000 10,000

-

72,000

-

28,750 30,000 30,350

351,100

Zodiac RM000 191,680 (103,000) 88,680 (53,200)

-

Zodiac RM000

212,600 -

212,600 39,500

33,250

31,200 316,550

125,000 -

-

96,420

-

29,950 24,500 40,680

316,550

Non-current assets

Property, plant and equipment Investments

Current assets

Inventories Current a/c: Taurus Current a/c: Zodiac Trade receivables Bank Total Assets

Equities and Liabilities

Equity

Ordinary shares @ RM1 each 10% Preference shares @ RM1 each Revaluation reserves Retained earnings

Non-current Liabilities

10% loan notes

Current Liabilities

Trade payables Current a/c: Virgo Other liabilities Total Equities and Liabilities

Statements of Comprehensive Income for the Year Ended 31 March 2012

294,000 330,500 624,500

51,700 31,000 24,500 34,200 25,900

791,800

330,000 -

168,600 123,500

100,500

24,500 -

44,700 791,800

Taurus RM000 140,500 (66,700) 73,800 (35,900) (1,000)

Virgo

Virgo RM000 Revenue 420,000

Cost of sales Gross profit Operating expenses Finance costs, net Dividend income from Taurus plc (Preference)

Dividend income from Zodiac plc Dividend income from Planet plc Profit before tax Income tax expense

Profit for the period

(300,200) 119,800 (60,000) (10,050)

200 3,000 16,100

69,050 (7,200) 61,850

- -

--

36,900 35,480 (3,100) (1,900) 33,800 33,580

Statements of Changes in Retained Earnings for the Year Ended 31 March 2012

Balance at 1 April 2011 Profit for the period Less: Dividends paid Balance at 31 March 2012

Virgo RM000 88,050 61,850 (26,400) 123,500

Taurus RM000 38,200 33,800

-

72,000

Zodiac RM000 77,840 33,580 (15,000) 96,420

statements of the

The following information is relevant to the preparation of the group financial Virgo Group:

• On 31 March 2010,DOA Virgo acquired 144,000,000 ordinary shares80% in Taurus plc for RM264,000,000COI and 20% of the preference shares 2,000 INTER CO (8,000 NCI) of Taurus plc for RM6,000,000COI when the retained earnings of Taurus amounted to RM8,400,000 PRE. There have been no changes in Taurus ordinary shares since 31 March 2010. Goodwill arising on consolidation had been impaired by RM800,000 up to 31 March 2011 EQUITY ANALYSIS, with a further impairment of RM100,000 EQUITY ANALYSIS in the current year ended 31 March 2012. *IF PREF SHARES ARE EQUITY 8,000 +TO NCI, IF PREF SHARES ARE LIABILITY, 8,000 SHOWN AS LIABILITY

• The fair value exercise carried out on 31 March 2010 showed that the fair value of Tauruss property, plant and equipment were RM16,000,000 greater than book value. However, this revaluation was not reflected in Tauruss financial statements. On 31 March 2010, the property, plant and equipment had an estimated useful life of 20 years.

• Virgo acquired 25,000,000 of the ordinary shares in Zodiac 20% on 1 October 2011 DOA paying RM2.42 per share COI = 60,500. Virgo carried out a fair value exercise at the date of acquisition of Zodiac and concluded that no fair value adjustments were required on the net assets of Zodiac.

• The preference shares of Taurus plc are redeemable on 31 March 2020. They were originally issued at par on 1 April 2007. The 10% preference dividend is payable on 31st March every year.

• On 28 March 2011, Taurus plc remitted and recorded in its books, a cheque in the sum of RM1,000,000 to Virgo plc. The cheque was not received by Virgo plc until 3 April 2012 when it was recorded in Virgos books.

• In November 2011, Virgo purchased goods from Taurus plc for RM27,000,000 with 20% mark up on cost. Virgo held 1/3 of these goods in inventory at 31 March 2012.

• The directors of Virgo paid ordinary dividends of 8 pence per share on 28 March 2012 while Zodiac paid ordinary dividends of 12 pence per share on 30 March 2012. ZODIAC = 15,000 X 20% = 3,000 (-) INVESTMENT IN ASSOCIATE

• The profits of the three companies for the year ended on 31 March 2012 are accrued evenly throughout the year.

  Required:

1. (a) Prepare a consolidated statement of comprehensive income for Virgo and its group companies for the year to 31 March 2012.

2. (b) Prepare a consolidated statement of financial position for Virgo and its group companies as at 31 March 2012.