A192- BKAR3043- FINANCIAL ACCOUNTING AND REPORTING IV

TUTORIAL 4: CONSOLIDATED STATEMENT OF CASH FLOW

SUBMISSION DATE:

QUESTION 1

QUESTION 1

Jelitakami Berhad is one of the well-established corporation in Malaysia. Followings are the
consolidated financial statements of Jelitakami Berhad for the year ended 31 December 2018.

Jelitakami Berhad
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2018
RM’000
Revenue 37,500
Cost of sales (16,710)
Gross profit 20,790
Administrative expenses (9,500)
Other expenses (2,110)
Gain on disposal of subsidiary 1,500
Finance cost (1,000)
Share of profit in associate 250
Profit before taxation 9,930
Less: Taxation (2,480)
Profit after taxation 7,450

Other comprehensive income -

Total comprehensive income 7,450

Profit for the year attributable to:

Owners of the company 5,811
Non-controlling interest 1,639

7,450

Jelitakami Berhad
Consolidated Statement of Financial Position
As at 31 December
2018 2017
RM’000 RM’000
ASSETS
Non-Current Assets

Property, plant and equipment 18,500 16,210

Intangible assets 2,800 3,100
 Goodwill 4,000 6,600
Investment in associate 3,950 2,400

29,250 28,310

Current assets
Inventories 9,500 7,450
Trade receivables 14,250 11,300
Cash 29,750 43,370

53,500 62,120

TOTAL ASSETS 82,750 90,430

EQUITY AND LIABILITIES

Equity
Share capital 30,000 30,000
Retained earnings 17,800 11,500

47,800 41,500

Non-controlling interests 15,000 20,000

Non-current liabilities
Long-term loan 10,000 12,000
Deferred tax 3,100 2,300

13,100 14,300

Current liabilities
Trade payables 3,640 10,150
Tax payable 3,210 4,480

6,850 14,630

TOTAL EQUITY AND LIABILITIES 82,750 90,430

Additional information:
1. In July 2018, Jelitakami Berhad disposed one of its subsidiaries, Anakami Berhad for
a cash consideration of RM9,000,000. Jelitakami Berhad acquired Anakami Berhad at
85% equity interest in 2011 and the NCI value is a fair value of RM5,000,000. On the
date of disposal, the relevant account balances are as follows:
RM’000
Property, plant and equipment 8,100
Inventories 2,000
 Trade receivables 4,200
Bank 2,000
Goodwill 1,800
Trade payables 5,600

2. During the year, Jelitakami Berhad disposed 15% without losing control of Kuta
Berhad for RM10,000,000. The share of net asset of the effect of change in Kuta
Berhad is RM7,000,000 allocated to NCI and the gain recognized directly in the
retained earnings.
3. In January 2018, Jelitakami Berhad acquired a 40% interest in Bumiku Berhad by
cash amounted to RM2,500,000. During the year, Bumiku Berhad paid dividend to
the shareholders.
4. Depreciation of property, plant and equipment amounted to RM2,700,000 charged to
administrative expenses. Amortisation of intangible assets was also charged to
administrative expenses.
5. No disposals of property plant and equipment took place during the year.
6. The impairment loss of goodwill was recognized and charged to administration
expenses
7. Jelitakami Berhad paid dividend during the year.

REQUIRED:

Prepare the Consolidated Statement of Cash Flow of Jelitakami Berhad for the year ended 31
December 2018 in accordance with MFRS 107 Statement of Cash Flows using indirect
method.

QUESTION 2

Padu Berhad (Padu) is a public listed manufacturing company. Its summarised consolidated
financial statements for the year ended 30 April 2018 (and 2017 comparatives where
relevant) are as follows:
Padu Berhad
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 April 2018
RM’million
Sales 18,410
Cost of sales (15,200)
Gross profit 3,210
Administrative expenses (3,750)
Gains on revaluation of financial assets 20
Finance cost (49)
Loss before taxation (569)
Less: Taxation (80)
Loss for the year (649)
Profit for the year attributable to:
Owners of the parent (654)
Non-controlling interest 5
(649)

Padu Berhad
Consolidated Statement of Financial Position
As at 30 April
2018 2017
RM’million RM’million
ASSETS
Non-Current Assets

Property, plant and equipment 2,360 2,400

Intangible assets 350 350
Goodwill 60 0
Financial assets 210 180
2,980 2,930

Current assets
Inventory and work-in-progress 400 275
Trade receivables 460 340
Cash and cash equivalents 0 230
860 845
Total assets 3,840 3,775
 EQUITY AND LIABILITIES
Equity
Share capital 1,900 1,650
Retained earnings 504 1,205
2,404 2,855
Non-controlling interests 50 0
2,454 2,855
Non-current liabilities
6% Bond 2021 680 550

Current liabilities
Trade payables 466 280
Bank overdraft 160 0
Tax payables 80 90
706 370
Total equity and liabilities 3,840 3,775

Additional information:
1. On 30 May 2017, Padu bought an 80% equity holding in Semangat Berhad
(Semangat) for RM200, by issuing 48 million equity shares valued at RM2.50 each
and RM80 million in cash. The net assets of Semangat at the acquisition date were:
RM’million
Inventories 25
Intangible assets 30
Trade payables (15)
Cash 20
Property, plant & equipment 120

The fair value of the non-controlling interest at the acquisition date was RM47
million. Goodwill was impairment tested at 30 April 2018, and any impairment loss
was correctly accounted for through administrative expenses.
2. There were no disposals of non-current assets during the year. No intangible assets
were acquired apart from those acquired through the acquisition of Semangat Berhad.
Depreciation of property, plant and equipment amounted to RM207 million, charged
to administrative expenses. Amortisation of intangible assets was also charged to
administrative expenses.
3. All transaction related to the 6% bonds were in cash basis.
4. Share dividends were paid during the year by Padu and Semangat.

REQUIRED:
Prepare the Consolidated Statement of Cash Flow of Padu Berhad for the year ended 30 April
2018 in accordance with MFRS 107 Statement of Cash Flows using indirect method.

QUESTION 3
Pumpkin Bhd is a public listed manufacturing company. Its summarised consolidated
financial statements for the year ended 30 June 2017 (and 2016 comparatives where relevant)
are as follows:

Pumpkin Bhd
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2017
RM’000
Sales 280,000
Cost of sales (240,000)
Gross profit 40,000
Distribution costs (29,000)
Administrative expenses (10,000)
Share of profits from associate 14,000
Interest expense (6,000)
Profit before taxation 9,000
Less: Taxation (3,000)
Profit for the year 6,000
Other comprehensive income (net of tax)
Items that will not be reclassified to profit or loss:
Revaluation gains on group property 13,000
Share of revaluations gains from associate’s property 4,000
17,000
Total comprehensive income for the year 23,000

Profit for the year attributable to:

Owners of the parent 5,000
Non-controlling interest 1,000
6,000

Total comprehensive income for the year attributable to:

Owners of the parent 22,000
Non-controlling interest 1,000
23,000
 Pumpkin Bhd
Consolidated Statement of Financial Position
As at 30 June 2017
2017 2016
RM’000 RM’000
ASSETS
Non-Current Assets

Property, plant and equipment 290,000 245,000

Goodwill 5,000 -
Investments in associates 51,000 40,000
346,000 285,000

Current assets
Inventory and work-in-progress 22,000 19,000
Trade receivables 52,000 28,000
Cash and cash equivalents 18,000 1,000
92,000 48,000

Total assets 438,000 333,000

EQUITY AND LIABILITIES

Equity
Share capital 195,000 106,000
Revaluation reserve 62,000 45,000
Retained earnings 68,000 65,000
325,000 216,000
Non-controlling interests 23,000 14,000
348,000 230,000

Non-current liabilities
12% Debentures 2019 50,000 50,000
Long term provisions 12,000 7,000
62,000 57,000

Current liabilities
Trade payables 23,000 33,000
Tax payables 5,000 13,000
28,000 46,000

Total equity and liabilities 438,000 333,000

Additional information:

1. The group acquired an 80% interest in Sardine Bhd during the year. The cost of 80%
acquisition in Sardine Bhd was RM60 million; which was settled by issuing 30
million equity shares valued at RM45 million plus cash of RM15 million. The non-
controlling interest was fair-valued at RM15 million on the acquisition date. The net
assets of Sardines Bhd at the acquisition date were:
Property plant and equipment RM45 million
Inventory RM5 million
Cash RM8 million
Sardine Bhd was correctly accounted for and fully consolidated in the above financial
statements.
2. No disposals of non-current assets took place during the year.
3. Depreciation charged to cost of sales during the year amounted to RM45 million.
4. Equity dividends were paid during the year out of retained earnings.
5. Goodwill was tested for impairment at the reporting date. An impairment loss was
recognized and charged to expenses.

REQUIRED:

Prepare the Consolidated Statement of Cash Flow of Pumpkin Bhd for the year ended 30
June 2017 in accordance with MFRS 107 Statement of Cash Flows using indirect method.