The summarised financial statements for Virgo Bhd group of companies at 31 March 2020 are as follows:

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

(i) On 31 March 2018, Virgo acquired 144,000,000 ordinary shares in Taurus Bhd for

RM264,000,000 and 20% of the preference shares of Taurus Bhd for RM6,000,000

when the retained earnings of Taurus amounted to RM8,400,000. There have been no

changes in Taurus ordinary shares since 31 March 2017. Goodwill arising on

consolidation had been impaired by RM800,000 up to 31 March 2019, with a further

impairment of RM100,000 in the current year ended 31 March 2020.

(ii) The fair value exercise carried out on 31 March 2018 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 2018, the property, plant and equipment had an estimated useful life of 20 years.

Depreciation is calculated on a straight line basis.

(iii) Virgo acquired 25,000,000 of the ordinary shares in Zodiac on 1 October 2019 paying

RM2.42 per share. 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.

(iv) The preference shares of Taurus Bhd are redeemable on 31 March 2028. They were

originally issued at par on 1 April 2019. The 10% preference dividend is payable on

31st March every year.

(v) On 28 March 2020, Taurus Bhd remitted and recorded in its books, a cheque in the sum

of RM1,000,000 to Virgo Bhd. The cheque was not received by Virgo Bhd until 3 April

2020 when it was recorded in Virgos books.

(vi) In November 2019, Virgo purchased goods from Taurus Bhd for RM27,000,000 with

20% mark up on cost. Virgo held 1/3 of these goods in inventory at 31 March 2020.

(vii) The directors of Virgo paid ordinary dividends of 8 cents per share on 28 March 2020

while Zodiac paid ordinary dividends of 12 cents per share on 30 March 2020.

(viii) It is group policy to value the non-controlling interest using the proportion of net assets

method

(ix) The profits of the three companies for the year ended on 31 March 2020 are accrued

evenly throughout the year.

Required:

a) Prepare a consolidated statement of comprehensive income for Virgo and its group

companies for the year to 31 March 2020. (20 marks)

b) Prepare a consolidated statement of financial position for Virgo and its group companies

as at 31 March 2020. (20 Marks)

Show all required workings

Statements of financial position as at 31 March 2020 \begin{tabular}{lccc} Assets & Virgo Taurus & \multicolumn{2}{c}{ Zodiac } \\ Non-current assets & RM'000 & RM'000 & RM'000 \\ Property, plant and equipment & & & \\ Investments & 294,000 & 227,300 & 212,600 \\ & 332,500 & & \\ \cline { 2 - 5 } & 626,500 & 227,300 & 212,600 \\ Current assets & & & \\ Inventories & 33,700 & 55,650 & 39,500 \\ Current a/c: Taurus & 31,000 & & \\ Current a/c: Zodiac & 24,500 & & \\ Trade receivables & 34,200 & 37,000 & 33,250 \\ Bank & 25,900 & 31,150 & 31,200 \\ Total Assets & 775,800 & 351,100 & 316,550 \\ \hline \end{tabular} Equities and Liabilities Equity Ordinaryshares@RM1each10%Preferenceshares@RM1eachRevaluationreservesRetainedearnings330,000168,600107,500180,00010,00072,000125,00096,420 Non-current Liabilities 10% loan notes Current Liabilities Trade payables Current a/c: Virgo \begin{tabular}{crr} 24,500 & 28,750 & 29,950 \\ & 30,000 & 24,500 \\ 44,700 & 30,350 & 40,680 \\ \hline 775,800 & 351,100 & 316,550 \\ \hline \end{tabular} Statements of changes in retained earnings for the year ended 31 March 2020 Statements of comprehensive income for the year ended 31 March 2020 Statements of financial position as at 31 March 2020 \begin{tabular}{lccc} Assets & Virgo Taurus & \multicolumn{2}{c}{ Zodiac } \\ Non-current assets & RM'000 & RM'000 & RM'000 \\ Property, plant and equipment & & & \\ Investments & 294,000 & 227,300 & 212,600 \\ & 332,500 & & \\ \cline { 2 - 5 } & 626,500 & 227,300 & 212,600 \\ Current assets & & & \\ Inventories & 33,700 & 55,650 & 39,500 \\ Current a/c: Taurus & 31,000 & & \\ Current a/c: Zodiac & 24,500 & & \\ Trade receivables & 34,200 & 37,000 & 33,250 \\ Bank & 25,900 & 31,150 & 31,200 \\ Total Assets & 775,800 & 351,100 & 316,550 \\ \hline \end{tabular} Equities and Liabilities Equity Ordinaryshares@RM1each10%Preferenceshares@RM1eachRevaluationreservesRetainedearnings330,000168,600107,500180,00010,00072,000125,00096,420 Non-current Liabilities 10% loan notes Current Liabilities Trade payables Current a/c: Virgo \begin{tabular}{crr} 24,500 & 28,750 & 29,950 \\ & 30,000 & 24,500 \\ 44,700 & 30,350 & 40,680 \\ \hline 775,800 & 351,100 & 316,550 \\ \hline \end{tabular} Statements of changes in retained earnings for the year ended 31 March 2020 Statements of comprehensive income for the year ended 31 March 2020