Tutorial Exercise Changes in shareholding interest

The 31 December 20X8 statement of financial position of P Bhd and its 60%
owned subisidary; S Bhd are as follow:

P Bhd S Bhd
RM '000 RM '000

Investment, at cost 60,000 shares in S Bhd 200 -

Land 100 600
Other assets 700 200
1,000 800

Share capital 500 100

Retained profits 400 200
Liabilities 100 500
1,000 800

Statement of comprehensive income for the year ending 31 December 20x9

P Bhd S Bhd
RM '000 RM '000

Revenue 660 500

Cost of sales 260 200
Gross profits 400 300
Operating expenses 230 180
Profit before tax 170 120
Tax 50 60
Profit after tax 120 60
Other comprehensive income
120 60

Statement of changes in equity for the year ending 31 December 20x9

Beginning retained profits 400 210

Profit for the year 120 60
Ending retained profits 520 270

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Tutorial Exercise Changes in shareholding interest

Statement of financial position as at 31 December 20x9:

P Bhd S Bhd
RM '000 RM '000

Investment, at cost 90,000 shares in S Bhd 260 -

Land 100 600
Other assets 900 420
1,260 1,020

Share capital 500 100

Retained profits 520 270
Liabilities 240 650
1,260 1,020

Additional information:

P acquires its investment in S Bhd in January 20x5 when S Bhd' net assets are
represented by share capital of RM100,000 and retained profit of RM75,000.
In July 20x8, P Bhd sold a land for RM200,000 to S Bhd. The land was originally
bought by P Bhd at a cost of RM180,000. At the end of 20x8, the land was still
in the possesion of S Bhd.

On 1 January 20x9, P Bhd acquires 30,000 of S Bhd's shares for cash

consideration of RM60,000. At the end of year 20x9, the land that S Bhd
bought from P Bhd was sold to outsiders.

NCI is measured using fair value of net assets of subsididary (proportionate

value)

Required:
1) Prepare 20x8 consolidated statement of financial position.
2) Prepare 20x9 consoilidated statement of comprehensive income, changes
in equity and financial position.

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