Reference no: EM133050155

Question - 1. The issued share capital of Venus Bhd and Mercury Bhd were as follows:

Company Name	Ordinary shares	8% Cumulative Preference shares	6% Cumulative Preference shares	10% Debentures
	Units	Units	Units	RM
Venus Bhd	1,800,000	200,000	-	-
Mercury Bhd	500,000	-	100,000	50,000

2. Land and building of Mercury Bhd have the following value:

	Land RM	Building RM
Fair value as at 1 July 2017	470,000	452,000
Carrying value as at 30 June 2017	350,000	350,000

Remaining useful lives of the building on the date of acquisition was 20 years. Building is depreciated on straight line method over its useful lives, and to be charged on yearly basis.

3. Investment income of Venus gag includes profit from sale of equipment to Mercury Bhd for RM14,000 and dividends received from Mercury Bhd RM6,300. On the date of disposal, the remaining useful lives of the equipment is 5 years. Depreciation of the equipment is calculated on straight line method over its useful lives, and to be charged on yearly basis.

4. Finance costs of Mercury Bhd are all debenture interest expense. Venus Bhd has not yet recorded the debenture interest receivable from Mercury Bhd.

5. Mercury Bhd sold goods to Venus Bhd at a mark-up of 25% on cost. During the year, Mercury Bhd recorded sales of RM49,500 to Venus Bhd. As at the year-end, Venus Bhd still held one third (1/3) of these goods.

6. The directors of Venus Bhd and Mercury Bhd have declared the final preference dividend on 20 June 2019 but not yet recorded by both companies.

7. Goodwill on consolidation was impaired by RM10,000 as at 30 June 2019.

Required -

a. Consolidated Statement of Profit or Loss of Venus Bhd and its subsidiary Mercury Bhd for the year ended 30 June 2019.

b. Consolidated Statement of Changes in Equity (extract) for the year ended 30 June 2019 showing the group retained profit and non-controlling interest only.