Question

The following are the statements of financial position as at 31 December 2019

Keris Tombak Meriam
RM ‘000 RM ‘000 RM ‘000
Ordinary share capital 14,400 8,000 1280
Retained Profit 480 576 400
Profit for the year 960 512 1120
Dividend Paid (160)
Loan from Tombak 320
Overdraft 160 288
Trade Payables 560 192 160
16,560 9,568 3,120
Land 1,280 3,360 1,424
Building 2880 3200 960
Plant and machinery 3440 1440 512
Investment in Tombak 7200
Investment in Meriam 1,600
Loan to Meriam 384
Trade Receivables 48 448 64
Inventories 64 256 96
Bank 48 480 64
16,560 9,568 3,120

Additional information:
1. Keris acquired 1,500,000 of the issued share capital Tombak on 1 January 2016 when
Tombak’s retained profit had a negative balance of RM320,000. The carrying value of
Tombak’s assets reflected fair value except for building which the fair value was in
excess of the carrying amount of RM1,440,000. The remaining life of the building was
25 years.

ACCT2131/June2020 Page 4 of 8
2. Keris acquired 640,000 of the issued share capital of Meriam on 1 April 2019. The
carrying value of its assets reflected fair value except for land which fair value was
RM480,000 in excess of the carrying amount. Meriam paid a dividend of RM160,000 in
March 2019.
3. During the year, Keris sold plant of carrying amount RM480,000 for RM800,000 to
Tombak. Plant is depreciated at 20% on cost, with a full year’s provision in the year of
acquisition.
4. Meriam sold inventory to Keris in the post-acquisition period. Intra-group profit in the
closing inventory was RM8,000.
5. On 1 July 2019, Tombak gave a 10% loan to Meriam. It gave a further RM64,000 on
30 December 2019 which has not been recognized by Meriam. Meriam has not accrued
the interest on the loan.
Required:
Prepare the consolidated statement of financial position of Keris Group as at 31 December
2019. Show all relevant workings.

Answer 1