White Berhad is an investment holding company. The financial year end of White Berhad

is 31 March annually. On 1 April 2019, White Berhad invested in Blue Bhd by acquiring

250,000 ordinary shares at RM7.00 per share. On the same date, White Berhad had also

purchased 100,000 ordinary shares of Green Bhd for RM900,000. For both acquisitions,

White Berhad incurred the transaction costs of RM170,000 and RM48,000 respectively.

As at 31 March 2020, the fair value of the shares in Blue Berhad and Green Berhad were

RM8.40 and RM6.50 per share, respectively.

In compliance with MFRS 9: Financial Instruments, White Berhad classifies the shares in

Blue Berhad as measured at fair value through other comprehensive income while the

shares in Green Berhad are classified as measured at fair value through profit or loss.

Required:

Determine the initial recognition and at year end of the shares in Blue Berhad and Green

Berhad in White's books for the year ended 31 March 2020. Illustrate the journal entries.

(11 marks)