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Persada Bhd acquired 400 million units of ordinary shares and 50 million units of preference share. of Rentaka Bhd on 1 January 2012 when the accumulated profits of Rentaka Bhd were RM100 million. Given below are the income statements and statements of changes in equity of Persada Bhd and Rentaka Bhd as at 31 December 2014: Penyata Pendapatan bagi tahun berakhir 31 Disember 2014 Income statement for the year ended 31 December 2014 Persada Bhd RM jutal million 2,000 (1,000) 1,000 Rentaka Bhd RM jutal million 1,500 (800) 700 Jualan/ Sales Kos Jualan/ Cost of sales Keuntungan Kasarl Gross Profit Tambah/ Add: Hasil Dividen dari Rentakal Dividend Income from Rentaka: Biasa (Bersih dari Cukai)/ Ordinary (Net of Tax) Keutamaan/ Preference Hasil dari jualan perkakasan/ Gain on sale of plant Ditolak/ less: Kos Operasi/ Operating expenses Keuntungan Sebelum Cukai/ Profit before tax Cukai/ Tax 8 5 20 (420) 613 (200) 413 (300) 400 (150) 250 Penyata Perubahan Ekuiti Persada bagi Tahun Berakhir 31 Disember 2014/ Statement of Changes in Equity of Persada for for the Year Ended 31st December 2014 Syer Keuntungan Syer Biasa/ Keutamaan/ Syer Premium/ Tertahan/ Ordinary Share Preference Sha Share Premium Retained Profit RM juta/ million RM jutal million RM juta/ million RM juta/ million 1.1.2014 800 100 40 100 Keuntungan bagi tahun/ Profit for the year 413 Dividen dibayar/ Dividends paid -Biasal Ordinary (30) - Keutamaan/ Preference (6) 800 100 40 477 Penyata Perubahan Ekuiti Rentaka bagi Tahun Berakhir1 Disember 2014/ Statement of Changes in Equity of Rentaka for for the Year Ended 31st December 2014 Syer Keuntungan Syer Biasa/ Keutamaan/ Syer Premium/ Tertahan/ Ordinary Share Preference Sha Share Premium Retained Profit RM juta/ million RM juta/ million RM juta/ million RM juta/ million 1.1.2014 500 100 40 80 Keuntungan bagi tahun/ Profit for the year 250 Dividen dibayar/ Dividends paid Biasal Ordinary (10) - Keutamaan Preference (10) 500 100 40 310 On 1 January 2012, the fair value of Rentaka Bhd's property was RM150 million more than its carrying value. The remaining useful life of the property was 10 years. Rentaka Bhd did not adjust its books to reflect the fair value. During the current year, Persada Bhd sold a plant to Rentaka Bhd at a profit of RM20 million. The remaining useful life of the plant was 4 years. The plant is depreciated on a straight line basis. Persada Bhd sold RM200 million of inventory to Rentaka Bhd at a profit of RM50 million. 80% of the inventory remains unsold. RM40 million of the opening inventory of Rentaka Bhd was bought from Persada Bhd and the unrealised profit on it was RM10 million. Goodwill on consolidation was impaired by RM15 million by 31st December 2013 and is further impaired by RM5 million as at 31st December 2014. Dikehendakil Required: With reference to additional information in (2) and (3) above, explain how the following item: affect the Non-Controlling Interest (NCI) in Rentaka Bhd: Penjualan loji/Sale of plant Penjualan barangan - inventori awal/Sale of goods - Opening Inventory Penjualan barangan - inventori akhir/Sale of goods - Closing Inventory (3 markah/marks) In each of the case of i) and ii) above, calculate the amount of the parent's (i.e. Persada Bhd's) unrealised profits and NCI's share (if applicable). Show all workings. (4 markah/marks) hs The consolidated income statement for Persada Bhd and its subsidiary, Rentaka Bhd as at 31 December 2014. Show all relevant workings. (NOTE: Consolidation journal entries are not required.). (15 markah/marks) The composition of Persada Bhd group retained profit as at 1 January 2014 and 31 December 2014. (5 markah/marks) Persada Bhd acquired 400 million units of ordinary shares and 50 million units of preference share. of Rentaka Bhd on 1 January 2012 when the accumulated profits of Rentaka Bhd were RM100 million. Given below are the income statements and statements of changes in equity of Persada Bhd and Rentaka Bhd as at 31 December 2014: Penyata Pendapatan bagi tahun berakhir 31 Disember 2014 Income statement for the year ended 31 December 2014 Persada Bhd RM jutal million 2,000 (1,000) 1,000 Rentaka Bhd RM jutal million 1,500 (800) 700 Jualan/ Sales Kos Jualan/ Cost of sales Keuntungan Kasarl Gross Profit Tambah/ Add: Hasil Dividen dari Rentakal Dividend Income from Rentaka: Biasa (Bersih dari Cukai)/ Ordinary (Net of Tax) Keutamaan/ Preference Hasil dari jualan perkakasan/ Gain on sale of plant Ditolak/ less: Kos Operasi/ Operating expenses Keuntungan Sebelum Cukai/ Profit before tax Cukai/ Tax 8 5 20 (420) 613 (200) 413 (300) 400 (150) 250 Penyata Perubahan Ekuiti Persada bagi Tahun Berakhir 31 Disember 2014/ Statement of Changes in Equity of Persada for for the Year Ended 31st December 2014 Syer Keuntungan Syer Biasa/ Keutamaan/ Syer Premium/ Tertahan/ Ordinary Share Preference Sha Share Premium Retained Profit RM juta/ million RM jutal million RM juta/ million RM juta/ million 1.1.2014 800 100 40 100 Keuntungan bagi tahun/ Profit for the year 413 Dividen dibayar/ Dividends paid -Biasal Ordinary (30) - Keutamaan/ Preference (6) 800 100 40 477 Penyata Perubahan Ekuiti Rentaka bagi Tahun Berakhir1 Disember 2014/ Statement of Changes in Equity of Rentaka for for the Year Ended 31st December 2014 Syer Keuntungan Syer Biasa/ Keutamaan/ Syer Premium/ Tertahan/ Ordinary Share Preference Sha Share Premium Retained Profit RM juta/ million RM juta/ million RM juta/ million RM juta/ million 1.1.2014 500 100 40 80 Keuntungan bagi tahun/ Profit for the year 250 Dividen dibayar/ Dividends paid Biasal Ordinary (10) - Keutamaan Preference (10) 500 100 40 310 On 1 January 2012, the fair value of Rentaka Bhd's property was RM150 million more than its carrying value. The remaining useful life of the property was 10 years. Rentaka Bhd did not adjust its books to reflect the fair value. During the current year, Persada Bhd sold a plant to Rentaka Bhd at a profit of RM20 million. The remaining useful life of the plant was 4 years. The plant is depreciated on a straight line basis. Persada Bhd sold RM200 million of inventory to Rentaka Bhd at a profit of RM50 million. 80% of the inventory remains unsold. RM40 million of the opening inventory of Rentaka Bhd was bought from Persada Bhd and the unrealised profit on it was RM10 million. Goodwill on consolidation was impaired by RM15 million by 31st December 2013 and is further impaired by RM5 million as at 31st December 2014. Dikehendakil Required: With reference to additional information in (2) and (3) above, explain how the following item: affect the Non-Controlling Interest (NCI) in Rentaka Bhd: Penjualan loji/Sale of plant Penjualan barangan - inventori awal/Sale of goods - Opening Inventory Penjualan barangan - inventori akhir/Sale of goods - Closing Inventory (3 markah/marks) In each of the case of i) and ii) above, calculate the amount of the parent's (i.e. Persada Bhd's) unrealised profits and NCI's share (if applicable). Show all workings. (4 markah/marks) hs The consolidated income statement for Persada Bhd and its subsidiary, Rentaka Bhd as at 31 December 2014. Show all relevant workings. (NOTE: Consolidation journal entries are not required.). (15 markah/marks) The composition of Persada Bhd group retained profit as at 1 January 2014 and 31 December 2014. (5 markah/marks)

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