of companies for the year ended 31 December 20XSMS tele-stage method of Given below are the summarized Statements of Profit or Loss of Puff Bhd, Cocoa Bhd and consolidation 5 Rice Bhd for the year ended 31 December 20x8: Statements of Profit or Loss for the Year Ended 31 December 20x8 Rice Bhd RM 500 Puft Bhd RM000 57,200 (33,200 24,000 (5.600) 120 140 Turnover Cost of sales Gross profit Operating expenses Ordinary dividend from Cocoa Bhd Preference dividend from Cocoa Bhd Profit before taxation RM000 23.400 9.500) 13.900 (3.900) 38.000 (7,400) 18,660 10.000 Taxation Profit after taxation (4,500) 14,660 30.600 (7,300) 23,3000 (2,400) 7,600 1,400 200 Ordinary dividend paid Preference dividend paid Retained profit at 1 January 20x8 700 79,000 64,000 13,800 CHAPTER 15 Complex Group Structure 435 Additional information (1) The issued share capital of all the companies is as follows as at 31 December 20x8: Puff Bhd Number of ordinary shares Number of preference shares 20,000,000 Cocoa Bhd Rice Bhd 20,000,000 20,000,000 3,500,000 RM'000 RM'000 10,000 10,000 7,000 RM'000 Carrying amount of ordinary shares 20,000 Carrying amount of preference shares There has been no new issue of ordinary and preference shares since the date of incorporation of all the companies. (ii) On 1 July 20x4, Puff Bhd acquired 12 million ordinary shares and 700,000 preference shares of Cocoa Bhd when the retained profit of Cocoa Bhd was RM14 million. On that date, the fair value of the building of Cocoa Bhd was RM100,000 more than its carrying value. The remaining life of the building was 10 years. Cocoa Bhd did not incorporate the fair value in its accounts. (ii) RM40,000 of the goodwill on consolidation for Cocoa Bhd was impaired by 31 December 20x6 and a further RM10,000 was impaired at 31 December 20x8. th Puff Bhd and Cocoa Bhd acquired 60% and 30% respectively of the chare On this date the retained ares 1000 7,000 There has been no new issue of ordinary and preference shares since the date of incorporation of all the companies. (ii) On 1 July 2004, Puff Bhd acquired 12 million ordinary shares and 700,000 preference shares of Cocoa Bhd when the retained profit of Cocoa Bhd was RM14 million. On that date, the fair value of the building of Cocoa Bhd was RM100,000 more than its carrying value. The remaining life of the building was 10 years. Coroa Bhd did not incorporate the fair valutacounts. (ii) RM40,000 of the goodwill on consolidation for Cocoa Bhd wasimpaired by 31 December 20x6 and a further RM10,000 was impaired at 31 December 2008 (iv) On 1 July 20x7 both Puff Bhd and Cocoa Bhd acquired 60% and 30% respectively of the issued share capital of Rice Bhd, paying RM1.50 per share. On this date, the retained profit of Rice Bhd was RM10 million Goodwill arising from the acquisition of Rice Bhd was not impaired as at 31 December 20x8. (v) During the year ended 31 December 20x8, Puff Bhd sold RM2.4 million of goods to Rice Bhd which were invoiced at cost plus 25%. Only RM300,000 of the goods remain unsold by Rice Bhd at 31 December 20x8. (vi) The preference shares of Cocoa Bhd are non-redeemable and have no fixed dividend rate (vii) Profit is deemed to accrue evenly throughout the year, unless otherwise stated. (viii) The group values its non-controlling interests at their proportionate interest in the fair values of the net assets of the subsidiaries. Required: (a) Prepare the Consolidated Statement of Profit or Loss of Puff Bhd group ended 31 December 20x8. (b) Prepare the Consolidated Statement of Changes in Equity of Puff Bhd group for the year ended 31 December 20x8, showing the retained profit and non-controlling interest for the year of companies for the year ended 31 December 20XSMS tele-stage method of Given below are the summarized Statements of Profit or Loss of Puff Bhd, Cocoa Bhd and consolidation 5 Rice Bhd for the year ended 31 December 20x8: Statements of Profit or Loss for the Year Ended 31 December 20x8 Rice Bhd RM 500 Puft Bhd RM000 57,200 (33,200 24,000 (5.600) 120 140 Turnover Cost of sales Gross profit Operating expenses Ordinary dividend from Cocoa Bhd Preference dividend from Cocoa Bhd Profit before taxation RM000 23.400 9.500) 13.900 (3.900) 38.000 (7,400) 18,660 10.000 Taxation Profit after taxation (4,500) 14,660 30.600 (7,300) 23,3000 (2,400) 7,600 1,400 200 Ordinary dividend paid Preference dividend paid Retained profit at 1 January 20x8 700 79,000 64,000 13,800 CHAPTER 15 Complex Group Structure 435 Additional information (1) The issued share capital of all the companies is as follows as at 31 December 20x8: Puff Bhd Number of ordinary shares Number of preference shares 20,000,000 Cocoa Bhd Rice Bhd 20,000,000 20,000,000 3,500,000 RM'000 RM'000 10,000 10,000 7,000 RM'000 Carrying amount of ordinary shares 20,000 Carrying amount of preference shares There has been no new issue of ordinary and preference shares since the date of incorporation of all the companies. (ii) On 1 July 20x4, Puff Bhd acquired 12 million ordinary shares and 700,000 preference shares of Cocoa Bhd when the retained profit of Cocoa Bhd was RM14 million. On that date, the fair value of the building of Cocoa Bhd was RM100,000 more than its carrying value. The remaining life of the building was 10 years. Cocoa Bhd did not incorporate the fair value in its accounts. (ii) RM40,000 of the goodwill on consolidation for Cocoa Bhd was impaired by 31 December 20x6 and a further RM10,000 was impaired at 31 December 20x8. th Puff Bhd and Cocoa Bhd acquired 60% and 30% respectively of the chare On this date the retained ares 1000 7,000 There has been no new issue of ordinary and preference shares since the date of incorporation of all the companies. (ii) On 1 July 2004, Puff Bhd acquired 12 million ordinary shares and 700,000 preference shares of Cocoa Bhd when the retained profit of Cocoa Bhd was RM14 million. On that date, the fair value of the building of Cocoa Bhd was RM100,000 more than its carrying value. The remaining life of the building was 10 years. Coroa Bhd did not incorporate the fair valutacounts. (ii) RM40,000 of the goodwill on consolidation for Cocoa Bhd wasimpaired by 31 December 20x6 and a further RM10,000 was impaired at 31 December 2008 (iv) On 1 July 20x7 both Puff Bhd and Cocoa Bhd acquired 60% and 30% respectively of the issued share capital of Rice Bhd, paying RM1.50 per share. On this date, the retained profit of Rice Bhd was RM10 million Goodwill arising from the acquisition of Rice Bhd was not impaired as at 31 December 20x8. (v) During the year ended 31 December 20x8, Puff Bhd sold RM2.4 million of goods to Rice Bhd which were invoiced at cost plus 25%. Only RM300,000 of the goods remain unsold by Rice Bhd at 31 December 20x8. (vi) The preference shares of Cocoa Bhd are non-redeemable and have no fixed dividend rate (vii) Profit is deemed to accrue evenly throughout the year, unless otherwise stated. (viii) The group values its non-controlling interests at their proportionate interest in the fair values of the net assets of the subsidiaries. Required: (a) Prepare the Consolidated Statement of Profit or Loss of Puff Bhd group ended 31 December 20x8. (b) Prepare the Consolidated Statement of Changes in Equity of Puff Bhd group for the year ended 31 December 20x8, showing the retained profit and non-controlling interest for the year