Prepare the consolidated statement of profit or loss of Langsam Berhad for the financial year ended 31 March 2020. (b) Prepare the consolidated statement of financial position of Langsam Berhad and its subsidiary at 31 March 2020.
For the financial year ended 31 March 2020, the draft
Statement of
Langsam Schnell
RM’000 RM’000
Operating profit 99,600 26, 600
Interest income 1, 500 900
Dividend income from Schnell Berhad 7,200 -
Net profit before tax 108, 300 27, 500
Net profit after tax 80, 100 19,800
Dividends 30, 000 9, 000
Retained profits 50, 100 10, 800
Beginning retained profits 101, 800 55, 800
Ending retained profits 151, 900 66, 600
Langsam Schnell
RM’000 RM’000
Net non-current assets 198, 800 110, 000
Net current assets 397, 000 273, 900
Investment in Schnell Berhad 140, 000 -
735, 800 383, 900
Non-current liabilities 60, 000 68, 000
Current liabilities 123, 900 99, 300
Share capital of RM1 each 400, 000 150, 000
Retained profits 151, 900 66, 600
735, 800 383, 900
Langsam Berhad acquires an 80% interest in Schnell Berhad on 1 April 2016 when the retained profit was RM10 million for a cash consideration of RM140 million. Langsam Berhad adopts the proportional net assets method in the valuation of non-controlling interest.
Additional Information:
- Dividends are paid net of income tax.
- All assets including
goodwill are stated at their fair market value at 31 March 2020. - In December 2019, Langsam Berhad sold inventories to its subsidiary for RM72 million. The profit margin is 120% on cost. At 31 March 2020, the value of the inventory remaining in Schnell Berhad was RM12 million which was reported under net current assets.
Required:
(a) Prepare the consolidated statement of profit or loss of Langsam Berhad for the financial year ended 31 March 2020.
(b) Prepare the consolidated statement of financial position of Langsam Berhad and its subsidiary at 31 March 2020.
Step by step
Solved in 2 steps
