Solution Far450 - Dec 2014

FAR450 – DEC 2014

SUGGESTED SOLUTION QUESTION 1 a) Gain or loss loss on the the subseq subsequent uent acqu acquisitio isition n of Juara Juara Bh Bh

Consideration transferred Fair value of net assets on 1/7/13 !C Retained "rofit

!" "illion

2000 √ 1240√ 3240 # 15$ √

(ain to ot)er *o+"onent of e,uit-

!" "illion 48& √

Dr .onControllin interest√ Cr t)er *o+"onent of e,uit- √ Cr nvest+ent√

!" "illion 480 √

%48&' & !" "illion &√ 480 √

%10√ # 1/2  5 +ars' b) Goo#ill on consoliation$Juara Bh !" "illion

Consideration transferred .C %25$#3220' .et assets at date of a*,uisition a*,uisition 1/7/12 !C Retained "rofit

!" "illion 2500 √ 805 √ 3305

2000 √ 1220 √ 3220 85

(oodill on *onsolidation √ Goo#ill on consoliation$Ga%ah Bh

!" "illion

Consideration transferred .C %40$#&150'

!" "illion 3&14 √ 24&0 √ &074

.et assets at date of a*,uisition a*,uisition 1/1/14 !)are *a"ital Retained "rofit 6/f  C "rofit "rofit %400 √ 9 80 √ ' # &/12 √ :  80 √ F< ad=ust+ent

4000 √ 14;0 √ 1&0 500 √ %&150' %7&'

>arain "ur*)ase √ 1

FAR450 – DEC 2014

Scheule of !etaine &rofit an N'I !" "illion

!" "illion

Grou( !& !" "illion

.C at 1/7/12  ?uara >)d De*rease in .C – ?uara >)d .C at 1/1/14  (aa) >)d !etaine (rofit  Juara Bh >alan*e 6/f @re C "rofit

N'I !" "illion 805√ %48&' √ 24&0 √

1240 √ %1220' √ 20 240 √

!etaine (rofit $ Ga%ah Bh >alan*e */f %18;0 √ – 14;0 √ 9 80 √ ' # &/12 √  A+ortisation – lease)old "ro" 500/25 # &/12

%75$' 15 %;0$' 21&

√ %25$' 5 √ %10$' 24

%&0$' 138

√ %40$' ;2

75&5 √ 7& √ %04' √ ;0 √ ,-.//0

2-/..

240 %10' √ 230

!etaine (rofit $ *ira Bh >alan*e */f >arain "ur*)ase r"B inventorDividend re*eiva6le ;0$ # 100 'SO+&

*ira Bh an its subsiiaries 'onsoliate State3ent of +inancial &osition as at 4. June 2.15 Non$'urrent 6ssets @ro"ert- "lant and e,ui"+ent %1208&930;595735' √ 9 500 √  10√ (oodill on *onsolidation√ 'urrent 6ssets %1&41593385952&5' √ 9 1√35√  04 √

Share 'a(ital an !eser8es rdinar- s)ares 10000 9 1&00 !)are "re+iu+ 2250 9 1&00 Retained @rofit t)er *o+"onent of e,uit-  (ain on su6se,uent a*,uisition √ .C Non$'urrent Liabilities %2&509;5091&10' 'urrent Liabilities %;4309205093500' √25√  ;0 √

!" "illion 2140& 85 250&21    5-77401 11&00 √√ 3850 √√ 80;;& & 2;00 5210√ 148875 5-77401

%50√ #   25 +ars' 2

FAR450 – DEC 2014

c0 e6at >)d *annot 6e e#*luded√ fro+ *onsolidation on t)e rounds of dissi+ilar a*tivities √ f a rou" *ontains diverse 6usiness a*tivities relevant infor+ation is to 6e "rovided 6*onsolidatin √ su*) su6sidiar- and dis*losin additional infor+ation √ in t)e *onsolidated finan*ial state+ent a6out t)e different 6usiness a*tivities of t)e su6sidiar- ie se+ent dis*losure √ %5√ # 1  5 +ars' %GotalB 35 +ars' QUESTION 2 %a'

RH+illion 720 √

.et "rofit 6efore ta#  Ad=ust+ents forB !)are of "rofit of asso*iate *o+"anDe"re*iation +"air+ent of oodill >ad de6t (ain on dis"osal of +a*)ine "eratin "rofit 6efore orin *a"ital *)anes

%100' 350 ;85 10 %35' 10435

√ √ √√ *1 √ √ √

%8√ #   4 +ars' *1 (oodill RH+illion >al 6/d  A*,uisition

RH+illion

8&1 I3(air3ent √ 1775 >al */d

%6' (oodill on a*,uisition of Iaut >)dB 'T 9' .C %25$√#2430' Fal */d

*2 !C RH+illion >al 6/d  A*, of su6 185&0 Ne# issue

RH+illion 15000 √ 1000 9 27.

>al */d

*2 !@ RH+illion >al 6/d  A*, of su6 ;40 Ne# issue

RH+illion 340 √ 200 √ 5..

*4 .C RH+illion √ 1/07 >al 6/d  A*, of su6 2704 @rofit

RH+illion 2000 √ &075 √ 11&

Di8ien >al */d

4

FAR450 – DEC 2014

Di8ien >al */d

*5 R@ RH+illion √ 5// >al 6/d 2070 @rofit attri6uta6le

RH+illion 2220 √ 34;

QUESTION 4 a) S3ile Bh 'onsoliate State3ent of &rofit or Loss an Other 'o3(rehensi8e Inco3e +or the :ear ene 4. June 2.15 !";... Revenue Cost of sales (ross "rofit n*o+e fro+ ot)er nvest+ents >arain "ur*)ase "eratin e#"enses Finan*e *ost !)are of asso*iateJs "rofit @rofit 6efore ta# Ga#ation @rofit for t)e -ear  t)er *o+"re)ensive in*o+e F< ain on AF! Gotal *o+"re)ensive in*o+e

%;0000945000' 5240 %45000921000' 5240 9 120

9 %4;800 # ;/12'  9%18000 # ;/12' 

%74380' ;2730

1200 9%;00 # ;/12' %137009&000' 9%4500 # ;/12' ad=B nil : == %200092200' 9 %2100 # ;/12' %8000 100 ' # 25$ %780094100' 9%&&00#;/12'

1&7110

*1)

42471 ;;0; 52380

Gotal *o+"re)ensive in*o+e attri6uta6le toB ners of t)e "arent 42471 9 450 .C >*1) @rofit for t)e -ear attri6uta6le to .CB Iau) >)d %12100  120 $ 400 '#30$ (ile >)d %1;800 300 '#;/12 # 44$

42;21 ;;0; 52830 3474 &435 ;;0;

5

FAR450 – DEC 2014

>45 ? @ A 1 3arCs) KK E#a+inersB Aard t)is ti* if students do not s)o t)e ad=ust+ent for t)e de"re*iation fro+ t)e sale of e,ui"+ent 6- (ile to Iau)  G)is is a "rea*,uisition sale and s)ould not )ave an- effe*t on de"re*iation P

6'

S3ile Bh 'onsoliate State3ent of 'han%es in Equit for the ear ene 4. June 2.15

>alan*e 6rou)t forard Consideration transferred B (ile %28700 # 30$'  A*,uisition dr t)e -ear  @rofit for t)e -ear  GC for t)e -ear rdinar- dividend "aid >alan*e *arried forard

Lave 6/f @rea*,uisition @ost a*,uisition nderde"re*iation %1 -r'

N'I !";... %L3' 8;00 %8&10' 10750

42471 %2500' &7421 

;;0; %L4' %400' 2054; 

!";... 20000 750

*2 R@ >al 6/f  (r" 6al 6/f >arain "ur*)ase  Iau) Iau)  6al 6/f @rea*,uisition @ost a*,uisition

!& !";... >*2) 27450

18000 %10000' 8000 # 70$

5&00

8000 %3500' 4500 %100' 4400 # 25$

L3 .C 6/f  Lau%h F< on DA %1/7/2011' R@ fro+ 1/7/2011 to 30/0&/2013

1100 27450

!";... 8000 # 30$

&

&500 2400 8;00

FAR450 – DEC 2014

L4 Dividends to .C Iau) (ile

!";... 300 100 400

1000 # 30$ 500 # 20$

>1 ? @ A , 3arCs) QUESTION 56>i)a Haar >)d dis"osed "art of its interest %25$' 6ut retains suffi*ient s)ares √ %&0$' to e#ert *ontrol √ over Ce+"aa >)d after t)e dis"osal date G)erefore t)ere is no *)ane √ in t)e relations)i" as Haar >)d is still t)e "arent √ M retains *ontrol √ of Ce+"aa >)d alt)ou) t)ere is a de*rease √ in t)e *ontrollin interest % & √ N  +ar ea*)  3 +ars' QUESTION 56>i)b Lit) t)e de*rease √ in t)e *ontrollin interest of Haar >)d in Ce+"aa >)d t)e non *ontrollin interest ould t)erefore in*rease √ fro+ 20$ √ to 40$ √ after t)e dis"osal date % 4 √ N  +ar ea*)  2 +ars' QUESTION 56>ii)

@ro*eed Carr-in value of invest+ent .et assets on 1/1/2014 (oodill

25+ # 25$ 45 + # 20$

Haar >)dOs finan*ial state+ent RHO+ill

(rou"Os Consolidated finan*ial state+ent RHO+ill

1√ %0&25' √√

1√

  

(ain on dis"osal

0375 √

 

%0;' √√  √√   01 √

 %10 √ #  +ar ea*)  5 +ars'

QUESTION 56>iii) t is ne*essar- to *o+"ute for 6ot) Haar >)dOs finan*ial state+ent and t)e rou"Os *onsolidated finan*ial state+ent 6e*ause t)e ain or loss on dis"osal in Haar >)dOs finan*ial state+ent is t)e differen*e 6eteen t)e "ro*eeds re*eived/re*eiva6le √ fro+ t)e dis"osal of interest in t)e su6sidiar- less t)e *arr-in value of t)e assets/invest+ent √√ Hean)ile t)e ain or loss on dis"osal for *onsolidation "ur"oses is t)e differen*e 6eteen t)e "ro*eeds re*eived/re*eiva6le √ less t)e "ro"ortionate a+ount of net assets of t)e su6sidiar- e#istin on t)e date of dis"osal √√ n t)is *ase t)e "arentOs s)are of t)e "ost a*,uisition in*rease √√ in t)e net assets of t)e su6sidiar- )as 6een re*oniPed G)is taes into a**ount t)e related net assets √ of t)e su6sidiar- t)at are 6ein dis"osed of and not =ust t)e *arr-in a+ount of t)e invest+ent √ %10√ #  +ar ea*)  5 +ars'

7

FAR450 – DEC 2014

QUESTION 5B>i) G)e 48$ interest in @un*a >)d )eld 6- Ala+ >)d ould 6e suffi*ient √ to ive it *ontrol of  @un*a >)d G)is is 6ased on t)e a6solute siPe of its )oldin √ and t)e relative siPe of t)e ot)er s)are)oldins √ in @un*a >)d )i*) ive Ala+ >)d suffi*ient do+inant votin interest √ to +eet t)e "oer *riterion it)out t)e need to *onsider √ an- ot)er eviden*e of  "oer 5√ # 1 +ar ea*)  5 +ars

QUESTION 5B>ii) !erin >)d does not √ )ave "oer over @erdana >)d 6ased on t)e siPe √ of !erin >)dOs votin interest and its siPe relative √ to t)e ot)er s)are)oldins Ga6a) >)d and Hedan >)d  =ust need to *oo"erate √ to 6e a6le to "revent √ !erin >)d fro+ dire*tin t)e relevant a*tivities of @erdana >)d 5√ # 1 +ar ea*)  5 +ars

8