Question 5

Imbi Berhad bought 60% of Els Sdn Bhd on 1 January 2022. The noncontrolling interest is measured equal to its proportionate share of the net assets of the subsidiary. The Statements of Financial Position for the two companies as at 31 December 2022 are as below:

You are provided with the following information:

• Els Sdn Bhd earned a profit of RM12,000 for the year ended 31st December 2022.
• The inventory of Els Sdn Bhd includes RM7,000 of goods purchased from Imbi Berhad at cost plus 25%
• On 1 July 2022, Els Sdn Bhd transferred an item of plant to Imbi Berhad for RM15,000. It’s carrying amount at that date was RM10,000. The plant had a remaining useful economic life of 5 years and is depreciated using the straight-line method. A full year’s depreciation is charged in the year of purchase.
• An impairment loss of RM2,000 is to be charged against goodwill at the year end.
• Included in Imbi Berhad’s trade receivables is RM4,000 relating to inventory sold to Els Sdn Bhd during the year. Els Sdn Bhd raised a cheque for RM2,500 and sent it to Imbi Berhad on 29 December 2022. Imbi Berhad did not receive this cheque until 10 January 2023.

Required:
Prepare the consolidated statement of financial position for Imbi Group as at 31 December 2022.