The following is the details about Tanker Berhad's acquisition of ordinary shares in Bida Berhad, Quin Berhad and Rumba Berhad: Items Bida Quin Rumba The date Tanker purchased the ordinary 1 October 2014 shares in the respective company 1 October 2012 1 April 2017 Number of units of ordinary shares 50,000 30,000 20,000 issued by respective company ('000) Percentage of ordinary shares acquired 80% 90% 32% by Tanker in the respective company The fair value of Identifiable Net Assets of the respective company at the date Tanker acquired their shares (RM'000): Contributed ordinary share capital 150,000 90,000 40,000 Contributed preference share capital 20,000 8.000 5,000 Fair value reserve 10,000 5,000 1,000 Revaluation reserve 60,000 23.000 8,000 Retained profits 330,000 120,000 60,000 The following is the Statement of Financial Position of Tanker Berhad, Bida Berhad, Quin Berhad and Rumba Berhad as at 30 September 2020 (RM'000): Tanker 3,662,000 305,000 3,357,000 Bida 1,433,200 180,000 1,253,200 Quin 585,600 55,400 530,200 Rumba 260,680 35,600 225,080 600,000 300,000 150,000 20,000 90.000 8,000 40,000 5,000 Total Assets Total Liabilities Total Net Assets Equities Contributed ordinary share capital Contributed preference share capital Fair value reserve Brought forward Current year Revaluation reserve Brought forward Current year Retained profits Brought forward Current year Total Equities 240,000 10,000 70,000 1,200 45.000 600 3,000 240 540,000 25,000 180,000 6,000 53,000 3,600 8,000 840 1,450,000 192,000 3,357,000 730,000 96,000 1,253,200 270,000 60,000 530,200 120,000 48,000 225,080 Additional information: 1. Tanker paid RM12.50 per share when it acquired Bida's shares. Tanker paid for Bida's ordinary shares: In cash for RM80 million, By transferring its assets to Bida. The carrying amount of the transferred assets at the acquisition date was RM330 million. Whilst the fair value of the assets on the same date was RM360 million. The assets have 30 years remaining economic life, For the remaining amount by issuing ordinary shares. On the acquisition date, Bida has an asset with a fair value of RM2.4 million above the asset's carrying amount. The asset has 12 years remaining economic life. Tanker has accounted for the cash payments for the purchase of Bida's shares. Other transactions have yet to be accounted. On 1 October 2014, Bida's share price was RM11.80. Later on 31 March 2020, Tanker sold 20% of its shareholdings in Bida for RM27 per share. 2. For the purchase of ordinary shares in Quin, Tanker paid RM8.80 per share. The payment was made: In cash for RM20 million, By transferring assets to former owners of Quin. The carrying amount of the assets at the shares' acquisition date was RM60 million. Whilst the fair value of the assets on the same date was RM80 million. The assets have 50 years remaining economic life, . For the remaining amount by issuing preference shares. On the acquisition date, Quin has an internally developed brand called "King" with estimated fair value of RM1.5 million and useful life of 15 years. Tanker has accounted for the cash payments for the purchase of Quin's shares. Other transactions have yet to be accounted. On 1 October 2012, Quin's share price was RM8.40. Later on 31 May 2020, Tanker sold 70% of its shareholding in Quin for RM18.50 each. The share price of Quin on this date was RM18.00. The remaining shareholdings in Quin gives Tanker a representation on the board of directors of Quin and power to participate in the decision making of Quin's financial and operating policies. 3. The purchase of Rumba's shares gave Tanker significant influence on the company's financial and operating policies. For the purchase of ordinary shares in Rumba, Tanker paid RM6.20 per share. 30% of the shares' payments was made in cash and the remaining by issuing ordinary shares. On 31 March 2020, Tanker sold 80% of its shareholdings in Rumba for RM12.20 per share, the share price of Rumba. At reporting date, Rumba share price was RM12.80. 4. Tanker and Bida have the following financial assets (RM'000): Tanker Bida Current asset Trade receivables 80,000 35,000 Non-current asset Financial assets measured at amortised cost 160,000 12,000 The Group's accounting policy is to estimate 2% of the financial assets' carrying amount as the future impairment loss for the assets with low risk of default payments. As at reporting date, after the assessment of relevant events, it is concluded the current trade receivables' payments will be received by due date. Whilst for the assessment of non-current financial assets, 20% of these amounts are estimated to have default payments problem. The lifetime impairment loss of the financial assets is estimated at 20% of its carrying amount. Tanker Berhad Group has not accounted the transactions above. 5. On 1 April 2020, the board of directors of the Group has made the decision to sell its office building in Ipoh, Perak. On 1 May 2020, the board of directors hired three real estate agents to find buyers for the building. On the same day, a "For Sale" sign is put in front of the office building. The office building will be available for immediate use once the sale of the building is finalised. On 1 October 2019, the office building's carrying amount was RM15 million. The building has 25 years estimated remaining useful life and is depreciated using straight line method. On 1 April 2020 and 1 May 2020, the fair value of the building is respectively, 20% and 30% higher than its carrying amount. The cost to sell the building which is the commission that will be paid to the real estate agents is 5% of the fair value of the building. As at reporting date, the Group has received three offers to buy the building at RM12 million, RM13 million and RM 10 million. The Group has decided to wait for a few more months for better offer and will finalise the sale of the building before 31 March 2021. 6. The accounting policy of Tanker Berhad Group is: To measure non-controlling interest at fair value of market Ownership of ordinary shares that is below 20% is to be designated as financial asset fair value through reserve. . 7. On 1 May 2020, Tanker sold RM5 million goods to Bida at 30% profit margin on selling price. As at 30 September 2020, RM0.2 million of these goods still remain in Bida. 8. On 1 July 2020, Bida sold RM2.5 million goods to Tanker at 25% profit margin on selling price. As at 30 September 2020, 40% of these goods still remain in Tanker. 9. Ignore deferred taxation effect. Required: (0) Compute the goodwill/bargain purchase arises on the purchase of shares in Bida, Quin and Rumba, respectively. (Show your workings). (ii) Compute the accretion/dilution in net assets or group gains/losses or gains/losses from the sale of shares in Bida, Quin and Rumba, respectively. (Show your workings). (iii) Prepare Tanker Berhad Group's Consolidated Statement of Financial Position as at 30 September 2020. (Show your workings). (iv) Assume, when Tanker Berhad purchased the 80% equity shareholdings in Bida on 1 October 2014, it designated the item as for sale in a year's time. Based on MFRS 5: Non-Current Assets Held for Sale and Discontinued Operations, explain how Tanker shall account the item. (40 Marks) The following is the details about Tanker Berhad's acquisition of ordinary shares in Bida Berhad, Quin Berhad and Rumba Berhad: Items Bida Quin Rumba The date Tanker purchased the ordinary 1 October 2014 shares in the respective company 1 October 2012 1 April 2017 Number of units of ordinary shares 50,000 30,000 20,000 issued by respective company ('000) Percentage of ordinary shares acquired 80% 90% 32% by Tanker in the respective company The fair value of Identifiable Net Assets of the respective company at the date Tanker acquired their shares (RM'000): Contributed ordinary share capital 150,000 90,000 40,000 Contributed preference share capital 20,000 8.000 5,000 Fair value reserve 10,000 5,000 1,000 Revaluation reserve 60,000 23.000 8,000 Retained profits 330,000 120,000 60,000 The following is the Statement of Financial Position of Tanker Berhad, Bida Berhad, Quin Berhad and Rumba Berhad as at 30 September 2020 (RM'000): Tanker 3,662,000 305,000 3,357,000 Bida 1,433,200 180,000 1,253,200 Quin 585,600 55,400 530,200 Rumba 260,680 35,600 225,080 600,000 300,000 150,000 20,000 90.000 8,000 40,000 5,000 Total Assets Total Liabilities Total Net Assets Equities Contributed ordinary share capital Contributed preference share capital Fair value reserve Brought forward Current year Revaluation reserve Brought forward Current year Retained profits Brought forward Current year Total Equities 240,000 10,000 70,000 1,200 45.000 600 3,000 240 540,000 25,000 180,000 6,000 53,000 3,600 8,000 840 1,450,000 192,000 3,357,000 730,000 96,000 1,253,200 270,000 60,000 530,200 120,000 48,000 225,080 Additional information: 1. Tanker paid RM12.50 per share when it acquired Bida's shares. Tanker paid for Bida's ordinary shares: In cash for RM80 million, By transferring its assets to Bida. The carrying amount of the transferred assets at the acquisition date was RM330 million. Whilst the fair value of the assets on the same date was RM360 million. The assets have 30 years remaining economic life, For the remaining amount by issuing ordinary shares. On the acquisition date, Bida has an asset with a fair value of RM2.4 million above the asset's carrying amount. The asset has 12 years remaining economic life. Tanker has accounted for the cash payments for the purchase of Bida's shares. Other transactions have yet to be accounted. On 1 October 2014, Bida's share price was RM11.80. Later on 31 March 2020, Tanker sold 20% of its shareholdings in Bida for RM27 per share. 2. For the purchase of ordinary shares in Quin, Tanker paid RM8.80 per share. The payment was made: In cash for RM20 million, By transferring assets to former owners of Quin. The carrying amount of the assets at the shares' acquisition date was RM60 million. Whilst the fair value of the assets on the same date was RM80 million. The assets have 50 years remaining economic life, . For the remaining amount by issuing preference shares. On the acquisition date, Quin has an internally developed brand called "King" with estimated fair value of RM1.5 million and useful life of 15 years. Tanker has accounted for the cash payments for the purchase of Quin's shares. Other transactions have yet to be accounted. On 1 October 2012, Quin's share price was RM8.40. Later on 31 May 2020, Tanker sold 70% of its shareholding in Quin for RM18.50 each. The share price of Quin on this date was RM18.00. The remaining shareholdings in Quin gives Tanker a representation on the board of directors of Quin and power to participate in the decision making of Quin's financial and operating policies. 3. The purchase of Rumba's shares gave Tanker significant influence on the company's financial and operating policies. For the purchase of ordinary shares in Rumba, Tanker paid RM6.20 per share. 30% of the shares' payments was made in cash and the remaining by issuing ordinary shares. On 31 March 2020, Tanker sold 80% of its shareholdings in Rumba for RM12.20 per share, the share price of Rumba. At reporting date, Rumba share price was RM12.80. 4. Tanker and Bida have the following financial assets (RM'000): Tanker Bida Current asset Trade receivables 80,000 35,000 Non-current asset Financial assets measured at amortised cost 160,000 12,000 The Group's accounting policy is to estimate 2% of the financial assets' carrying amount as the future impairment loss for the assets with low risk of default payments. As at reporting date, after the assessment of relevant events, it is concluded the current trade receivables' payments will be received by due date. Whilst for the assessment of non-current financial assets, 20% of these amounts are estimated to have default payments problem. The lifetime impairment loss of the financial assets is estimated at 20% of its carrying amount. Tanker Berhad Group has not accounted the transactions above. 5. On 1 April 2020, the board of directors of the Group has made the decision to sell its office building in Ipoh, Perak. On 1 May 2020, the board of directors hired three real estate agents to find buyers for the building. On the same day, a "For Sale" sign is put in front of the office building. The office building will be available for immediate use once the sale of the building is finalised. On 1 October 2019, the office building's carrying amount was RM15 million. The building has 25 years estimated remaining useful life and is depreciated using straight line method. On 1 April 2020 and 1 May 2020, the fair value of the building is respectively, 20% and 30% higher than its carrying amount. The cost to sell the building which is the commission that will be paid to the real estate agents is 5% of the fair value of the building. As at reporting date, the Group has received three offers to buy the building at RM12 million, RM13 million and RM 10 million. The Group has decided to wait for a few more months for better offer and will finalise the sale of the building before 31 March 2021. 6. The accounting policy of Tanker Berhad Group is: To measure non-controlling interest at fair value of market Ownership of ordinary shares that is below 20% is to be designated as financial asset fair value through reserve. . 7. On 1 May 2020, Tanker sold RM5 million goods to Bida at 30% profit margin on selling price. As at 30 September 2020, RM0.2 million of these goods still remain in Bida. 8. On 1 July 2020, Bida sold RM2.5 million goods to Tanker at 25% profit margin on selling price. As at 30 September 2020, 40% of these goods still remain in Tanker. 9. Ignore deferred taxation effect. Required: (0) Compute the goodwill/bargain purchase arises on the purchase of shares in Bida, Quin and Rumba, respectively. (Show your workings). (ii) Compute the accretion/dilution in net assets or group gains/losses or gains/losses from the sale of shares in Bida, Quin and Rumba, respectively. (Show your workings). (iii) Prepare Tanker Berhad Group's Consolidated Statement of Financial Position as at 30 September 2020. (Show your workings). (iv) Assume, when Tanker Berhad purchased the 80% equity shareholdings in Bida on 1 October 2014, it designated the item as for sale in a year's time. Based on MFRS 5: Non-Current Assets Held for Sale and Discontinued Operations, explain how Tanker shall account the item. (40 Marks)