Question

10.11 the blowing are the are the statements of financial position of Hills and Shore as at 30 June 3: Hills RM'000 Shore RM'000 1,000 Equity and Liabilities Ordinary share capital Ordinary share capital Blained profit as at 1 July x2 Profit for the year 500 180 220 10 percent debentures Nil 1,400 Assets 520 Investment in Shore 300,000 ordinary shares Land at cost Pant Sundry net assets 2010 140 740 1,400 Additional information: The ordinary share capital of Hills consists of 200,000 ordinary shares and that of Shore consists of 500,000 ordinary shares. Hills purchased 300,000 ordinary shares in Shore on 1 July x2. The fair value of the land of Shore on 1 July x2 was RM500,000. Shore did not incorporate this value in its accounts. Subsequently, the fair value increased by RM50,000. There were no additions or disposals of land during the current year. The fair value of the plant of Shore was RM100,000 more than its carrying amount on 1 July x2. The remaining economic life of the plant was five years as at 1 July x2. The group wants to disclose the land at fair value. Goodwill recognised is limited to the parent's share. Goodwill on consolidation is impaired by 20 percent. From the information given, you are required to prepare the consolidated statement of financial positic -12 lune x3.

Answer 1

Ans.

Consolidated Financial Position as on 30 June x3

	Particulars	Amount (RM'000)	Amount (RM'000)
I.	Equity & Liabilities
	Ordinary Share Capital		1,000
	Retained Profits		240
	Profit for the Year		340
	10% Debentures		60
	TOTAL (A)		1640
II.	Assets
	Land		300
	Plant		308
	Sundry net assets		920
	Goodwill		112
	TOTAL (B)		1640