Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
TASK 2: The statement of financial position of Grandpa Bhd and Grandma Bhd as at December 31, 2015 were as follows:
TASK 2:
The statement of financial position of Grandpa Bhd and Grandma Bhd as at December 31, 2015 were as follows:-
Grandpa Bhd Grandma Bhd
RM'000 RM'000
Property Plant & Equipment 9,000 5,000
Investment in Mama Plc 5,000
Other Assets 2,000 1,500
16,000 6,500
Share Capital 500 500
Retained Earnings 14,500 5,000
Other Liabilities 1,000 1,000
16,000 6,500
Grandpa Bhd acquired 80% equity in Grandma Bhd two years ago.
At the date of acquisition, Grandma's retained earnings stood at RM3miliion and the fair value of its net assets was RM5million. This was RM1.5million above the carrying amount of the net assets at this date. The fair value adjustment related to an asset that had a remaining useful economic life of 10 years as at the date of acquisition. The goodwill arising on consolidation has not suffered any impairment.
Required:
Prepare the consolidated statement of financial position of Grandpa Bhd Group as at December 31, 2015, on the assumption that non-controlling interest is valued at fair value (use the full goodwill method).
Please show all workings
