Bowling Berhad acquired its 80% investment in Ping Pong Berhad on 1 January 2019 when the retained earnings of Ping Pong Berhad stood at RM6,000,000. The agreed consideration was RM30,000,000 cash and a further RM10,000,000 on 1 January 2021 if Ping Pong Berhad attained certain anticipated profit targets. Ping Pong Berhad's cost of capital is 7 per cent. There have been no changes in the share capital or revaluation surplus of Ping Pong Berhad since that date. The drafted statements of financial position at 31 December 2020 for Bowling Berhad and Ping Pong Berhad are given below:

Additional information:-

(i) Ping Pong Berhad has an internally-developed brand name 'PP' which was valued at RM5,000,000 at the date of acquisition. It has not been accounted in the book.

(ii) At 30 December 2020 Ping Pong Berhad had invoiced Bowling Berhad for goods to the value of RM2,000,000 which had not been received by Bowling Berhad.

(iii) There is no impairment of goodwill. It is group policy to value non-controlling interest at full fair value. At the acquisition date the non-controlling interest was valued atRM9,000,000.

Required:-

Prepare the consolidated statement of financial position for the Bowling Group for the year ended 31 December 2020. [30 marks]

STATEMENTS OF FINANCIAL POSITION Bowling Bhd RM'000 Ping Pong Bhd RM'000 Non-current assets Property, plant and equipment Investment in Ping Pong Berhad 40,000 50,000 30,000 80,000 40,000 Current assets Inventory Receivables Bank Owed by Bowling Berhad 3,000 16,000 2,000 5,000 7,000 3,000 10,000 65,000 101,000 Equity Share capital - RM1 ordinary shares Revaluation reserves Retained earnings 45,000 12,000 26,000 83,000 25,000 5,000 28,000 58,000 Current liabilities Owed to Ping Pong Berhad Trade payables 8,000 10,000 101,000 7,000 65,000