60.1K

Verified Solution

Link Copied!

Given below are the statements of financial position of Creative Cartoons Bhd and Ink Alive Sdn Bhd, as at 31 December 2020. Ink Alive RM'000 400 Statement of Financial Position as at 31 December 2020 Creative Cartoons RM'000 Assets Property, plant and equipment (carrying amount) 500 Investments at cost: Shares in Ink Alive Sdn Bhd 750 Inventories 50 Trade and other receivables SO Bank balances 150 1.500 Equity & Liability Share capital of RM1.00 each 1,000 Retained profits 400 Trade and other payables 50 Borrowings SO 1,500 70 60 100 630 500 110 10 10 630 Additional information: a) On 1 January 2020: Creative Cartoons Bhd acquired a 90% interest in the equity capital of Ink Alive Sdn Bhd for a cash consideration of RM750,000. The retained profit of Ink Alive Sdn Bhd had a credit balance of RM50,000. b) Included in the property, plant and equipment of Ink Alive Sdn Bhd is a freehold land recorded at cost of RM100,000. At acquisition date, this land was assessed to have a fair value of RM250,000. Ink Alive Sdn Bhd did not adjust its financial statements to reflect the new value. c) Ignore deferred tax effects on fair value adjustment and intragroup transactions. Required: Prepare the Consolidated Statement of Financial Position as at 31 December 2020 for the Creative Cartoons Bhd Group

Answer & Explanation Solved by verified expert

See Answer