B. On 14 July 2020 Comby Bhd. and Diandra Bhd each acquired 30 per cent of the ordinaryshares that carry voting rights at a general meeting of shareholders of Zuka Bhd forRM100,000.00 The purchase price is equal to the fair value of 30 per cent of Zuka'sidentifiable assets less 30 per cent of its identifiable liabilities. Comby Bhd. and DiandraBhd immediately agreed to share control over Zuka Bhd.For the year ended 30 June 2020 Zyka's 1scognised a loss of RM600,000.00. Comby Bhd.and Diandra Bhd. have no constructive or legal obligation in respect of their jointlycontrolled entity's loss and have made no payments on its behalf. Zuka Bhd recoguisedprofit for the year ended 30 June 2021 of RM800,000.00 There is no published pricequotation for Zuka Bhd.REQUIRED:Calculate the investment for Comnby Bhd. and Diandra Bhd. using equity method for theyear 2020 and 2021.

As per IAS 28, Investment in associates and joint venture, the investment in the associate should be…

B. On 1 July 2020 Comby Bhd. and Diandra Bbd each acquired 30 per cent of the ordinary shares that carry voting rights at a general meeting of shareholders of Zuka Bhd for RM100,000.00 The purchase price is equal to the fair value of 30 per cent of Zuka's identifiable assets less 30 per cent of its identifiable liabilities. Comby Bhd. and Diandra Bhd immediately agreed to share control over Zuka Bhd. For the year ended 30 June 2020 Zuka's recognised a loss of RM600,000.00. Comby Bhd. and Diandra Bhd. have no constructive or legal obligation in respect of their jointly controlled entity's loss and have made no payments on its behalf. Zuka Bbd recognised profit for the year ended 30 June 2021 of RM800,000.00 There is no published price quotation for Zuka Bhd. REQUIRED: Calculate the investament for Comby Bhd. and Diandra Bad. using equity method for the year 2020 and 2021.

B. On 1 July 2020 Comby Bhd. and Diandra Bbd each acquired 30 per cent of the ordinary shares that carry voting rights at a general meeting of shareholders of Zuka Bhd for RM100,000.00 The purchase price is equal to the fair value of 30 per cent of Zuka's identifiable assets less 30 per cent of its identifiable liabilities. Comby Bhd. and Diandra Bhd immediately agreed to share control over Zuka Bhd. For the year ended 30 June 2020 Zuka's recognised a loss of RM600,000.00. Comby Bhd. and Diandra Bhd. have no constructive or legal obligation in respect of their jointly controlled entity's loss and have made no payments on its behalf. Zuka Bbd recognised profit for the year ended 30 June 2021 of RM800,000.00 There is no published price quotation for Zuka Bhd. REQUIRED: Calculate the investament for Comby Bhd. and Diandra Bad. using equity method for the year 2020 and 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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