URGENT!! REFER TO PICTURE FIRST THEN BELOW:

Additional Information

1. From the available records of the companies, you extracted the following fair value adjustments which have not been adjusted in the books. The group uses revaluation model to prepare its accounts:

As at 1 January 2018	Horus (RM)	Sunbeam (RM)		Soleil (RM)		Athena (RM)
Plant Useful life		200,000 8 years
Machinery Useful life		100,000 5 years
Land	500,000		300,000
As at 31 Dec 2019 Land		400,000			150,000

2. For year ended 2018, Sunbeam sold equipment to Horus with the profit of RM50,000. Useful life of this asset is estimated to be 5 years. Full year depreciation is charged in the year of acquisition and none in the year of disposal.

3. During the year, Soleil sold inventories with the invoice value of RM800,000 to Horus at cost plus 25%. 20% of the ending inventory in Horus were inventories purchased from Soleil.

4. Soleil also sold inventories to Sunbeam at the invoice price of RM4,712,000 at cost plus 25%. 80% of these inventories have been sold off to third parties. Sunbeam has paid for 50% of the invoice balance but the payment was only received after 31 December 2019.

5. For year ended 2019, Athena sold inventories to Horus at cost plus 25%, the invoice value was RM100,000 and 50% of these inventories have been sold off.

6. Soleil has not accrued its loan interest expense for the full year and Sunbeam has not recognised the interest income in its books.

7. The group uses straight line depreciation and partial goodwill to prepare its accounts.

8. Difference in current account is due to inventory in transit.

9. All depreciation expenses and goodwill impairment are to be adjusted in administration expenses.

Required:

1. Determine the goodwill for all the investments.

2. Prepare the Group Statement of Financial Position as at 31 December 2019.

3. Prepare the Group Statement of Comprehensive Income for year ended 31 December 2019.

4. Prepare the Group Statement Changes in Equity for year ended 31 December 2019.

Note: Show ALL relevant workings

(48 marks)

You have been recently promoted to be the group accountant for Horus Berhad and the following information were found in the minutes of meeting: The following financial statements were extracted from the company's records: Statements of Financial Position as at 31 December 2019: Statements of Comprehensive Income for year ended 31 December 2019 Sunbeam Soleil Athena RM'000 RM'000 RM'000 RM'000 Horus Horus Sunbeam Soleil Athena RM'000 RM'000 RM'000 RM'000 1. Horus Berhad acquired 70% of the ordinary shares of Sunbeam on 1 January 2018 with consideration transferred of RM21 million. On the same date, Horus also acquired 40% of the preference shares issued by Sunbeam by cash consideration of RM200,000. Turnover 15,900 9,873 7,336 5,880 -) Cost of sales (7,880) (4,621) (3,316) (3,120) 2. Upon checking the previous year's statements, the retained earnings of Sunbeam as at 1 January 2018 was RM634,000. There are no issuance of new shares since acquisition date. 11,207 9,009 1,860 2,136 1.269 6,463 3,224 1,863 988 841 3,887 2.114 866 872 654 Gross margin Investment: Ordinary shares of Sunbeam Preference shares of Sunbeam 21,000 200 Non-current assets: Land Building 25,916 Plant 15,400 Machinery 2,700 Equipment 3,100 1,950 Current assets: 10% Loan to Soleil Inventory Current account Trade receivables 3,010 Bank 780 3,650 4,210 Total assets 81,916 4,020 2,760 8,020 5,252 (3,564) (1,781) - Administration expenses (1,153) (736) 3. Sunbeam's partial goodwill has been impaired by RM462,000 for the year 2019. There was no impairment recorded in the previous year. - Selling expenses (1,996) 1964) 1785) (241) 250 2,356 1,335 853 +) Gain from sale of plant 50 2,669 688 1,154 711 871 100 Profit before taxation 2,460 2,557 2,082 1,783 On 1 January 2019, Horus acquired 80% of the ordinary shares of Soleil Sdn Bhd with the following consideration: -) Taxation (620) (590) (340) (475) 1,607 31,444 16,579 10,217 Profit after tax 1,840 1,967 th 1,443 REb/f 6,825 1,732 428 (849) 58,850 20,000 10,000 8,000 3,000 Cash payment on 1 January 2019 RM2 million Horus ordinary shares valued at RM5 million Additional cash payment payableon 1 January 2020 RM3.3 million Cost of capital is given as 10% per annum. Dividends declared in December 2019: Ordinary shares 596 Preference shares 696 Preference shares 896 Preference shares 796 Debentures 395 500 296 Full year Half year Full year 600 Ordinary shares 5% Preference shares 6% Preference shares 8% Preference shares Revaluation reserve Retained earnings 7% Debentures 10% Loan from Sunbeam Current account Trade payables Other payables Full year Full year 300 1,800 2,035 5,000 8,665 800 3,000 3,699 200 594 250 Horus also acquired 50% of the preference shares issued by Soleil on 1 January 2019 In 1 April 2019, Horus acquired 20% of Athena Sdn Bhd ordinary shares with cash payment of RM1.5 million. 575 195 4,235 897 2,806 664 1,896 103 1,366 126 There are no issuance of new shares for all the companies since 1 January 2018. Total equities and liabilities 81,916 31,444 16,579 10,217 You have been recently promoted to be the group accountant for Horus Berhad and the following information were found in the minutes of meeting: The following financial statements were extracted from the company's records: Statements of Financial Position as at 31 December 2019: Statements of Comprehensive Income for year ended 31 December 2019 Sunbeam Soleil Athena RM'000 RM'000 RM'000 RM'000 Horus Horus Sunbeam Soleil Athena RM'000 RM'000 RM'000 RM'000 1. Horus Berhad acquired 70% of the ordinary shares of Sunbeam on 1 January 2018 with consideration transferred of RM21 million. On the same date, Horus also acquired 40% of the preference shares issued by Sunbeam by cash consideration of RM200,000. Turnover 15,900 9,873 7,336 5,880 -) Cost of sales (7,880) (4,621) (3,316) (3,120) 2. Upon checking the previous year's statements, the retained earnings of Sunbeam as at 1 January 2018 was RM634,000. There are no issuance of new shares since acquisition date. 11,207 9,009 1,860 2,136 1.269 6,463 3,224 1,863 988 841 3,887 2.114 866 872 654 Gross margin Investment: Ordinary shares of Sunbeam Preference shares of Sunbeam 21,000 200 Non-current assets: Land Building 25,916 Plant 15,400 Machinery 2,700 Equipment 3,100 1,950 Current assets: 10% Loan to Soleil Inventory Current account Trade receivables 3,010 Bank 780 3,650 4,210 Total assets 81,916 4,020 2,760 8,020 5,252 (3,564) (1,781) - Administration expenses (1,153) (736) 3. Sunbeam's partial goodwill has been impaired by RM462,000 for the year 2019. There was no impairment recorded in the previous year. - Selling expenses (1,996) 1964) 1785) (241) 250 2,356 1,335 853 +) Gain from sale of plant 50 2,669 688 1,154 711 871 100 Profit before taxation 2,460 2,557 2,082 1,783 On 1 January 2019, Horus acquired 80% of the ordinary shares of Soleil Sdn Bhd with the following consideration: -) Taxation (620) (590) (340) (475) 1,607 31,444 16,579 10,217 Profit after tax 1,840 1,967 th 1,443 REb/f 6,825 1,732 428 (849) 58,850 20,000 10,000 8,000 3,000 Cash payment on 1 January 2019 RM2 million Horus ordinary shares valued at RM5 million Additional cash payment payableon 1 January 2020 RM3.3 million Cost of capital is given as 10% per annum. Dividends declared in December 2019: Ordinary shares 596 Preference shares 696 Preference shares 896 Preference shares 796 Debentures 395 500 296 Full year Half year Full year 600 Ordinary shares 5% Preference shares 6% Preference shares 8% Preference shares Revaluation reserve Retained earnings 7% Debentures 10% Loan from Sunbeam Current account Trade payables Other payables Full year Full year 300 1,800 2,035 5,000 8,665 800 3,000 3,699 200 594 250 Horus also acquired 50% of the preference shares issued by Soleil on 1 January 2019 In 1 April 2019, Horus acquired 20% of Athena Sdn Bhd ordinary shares with cash payment of RM1.5 million. 575 195 4,235 897 2,806 664 1,896 103 1,366 126 There are no issuance of new shares for all the companies since 1 January 2018. Total equities and liabilities 81,916 31,444 16,579 10,217