FACULTY OF ACCOUNTANCY

BACHELOR OF ACCOUNTANCY (HONS.)

SEMESTER MAR 2022 - AUG 2022

ADVANCED FINANCING ACCOUNTING AND REPORTING 1 / CONSOLIDATED

FINANCIAL STATEMENT
FAR 620

GROUP PROJECT 2
GROUP 5

PREPARED BY :

1 NUR ATHIRAH HAZWANI BT MOHD ALI 2020364977

2 SITI MARIAM INSYIRAH BINTI MOHAMED 2020272134

RADZWAN

3 NUR SHAKILA BINTI MD LANI 2019669024

4 SITI NURSYAFAHANI BINTI MOHD SAFI’E 2020212984

 a) Determine the functional currency of Snowberry Plc and explain your answer.

The functional currency of Snowberry Plc is SG$. It is because of the products

are sold locally at selling prices denominated in SG$. Snowberry incurred all
sales and operating expenses locally and are paid in SG% currency.
Snowberry also not dependents on Hawthorn Bhd for financing its business
activities.
b) Recommend the most appropriate method to be used in translating the financial
statements of Snowberry Plc in accordance with MFRS 121, The Effects of Changes
in Foreign Exchange Rates.

The most appropriate method to be used in translating the financial statements of

Snowberry Plc in accordance with MFRS 121, The Effects of Changes in Foreign
Exchange Rates. Non-monetary items which are carried at fair value denominated in
a foreign currency should be reported using the exchange rates that existed when
the values were determined.

c) Calculate the gain or loss on translation of goodwill arising from the acquisition of
Snowberry Plc for the year ended 31 December 2021.

SG$’000 RATE (RM) RM’000

CT 209,000

NCI 25%X188,100 47,025

256,025

FVNA

Ordinary Share 176,000

Retained 12,100 (188,100)

Earning

Goodwill @ 67,925 2.5 27,170

DOA @ 1/1/21

Goodwill @ 67,925 3 22,642

31/12/21

Exchange 4,528
Difference - OCI
d) Translate the Statement of Financial Position and the Statement of Profit or Loss for
Snowberry Plc into Ringgit Malaysia for the purpose of preparation of the
consolidated financial statements of Hawthorn Bhd for the year ended 31 December
2021.

Snowberry Plc
Statement of Financial Position as at 31 December 2021

SG$’000 RATE (RM) RM’000

Property, 286,000+17, 347,160 3 115,720

Plant and 600+44,000-
Equipment 440 (W1)

Inventory 66,000 3 22,000

Trade 78,100 3 26,033

Receivable

Bank 33,000 3 11,000

524,260 174,753

Ordinary 176,000 2.5 70,400

Share

Retained 53,900-440- 27,060 bal fig (6,820)

Profit 26400

Asset 17,600+44,0 61,600 2.5 24,640

Revaluation 00
Reserve

Long Term 132,000 3 44,000

Loans

Trade 70,400 3 23,467

Payable

Tax Payable 30,800 3 10,267

Dividend 26,400 3 8,800

Payable

524,260 174,753

Working 1 = 17,600/40 years = 440

 Snowberry Plc
Statement of Profit or Loss for the year ended 31 December 2021

SG$’000 RATE RM’000

Revenue 352,000 2.75 128,000

Cost of Sales (209,000) 2.75 (76,000)

Gross Profit 143,000 52,000

Selling (33,000) 2.75 (12,000)

Expenses

Administrativ (55,000) 2.75 (20,000)

e Expenses

Depreciation W1 (440) 2.75 (160)

Profit Before 54,560 19,840

Tax

Taxation (13,200) 2.75 (4,800)

Profit for the 41,360 15,040

year
e) Compute the exchange difference arising from the translation of the financial
statements of Snowberry Plc for the year ended 31 December 2021.

SOFP SOPL Diff

PAT (6,820) 15,040 (21,860)

Goodwill (4,528)

Total Exchange (26,388)

Decrease (P&L)

Parent (0.75) NCI (0.25) Total

(16,395 (5,465) (21,860)

(4,528) (4,528)

(20,923) (5,465) (26,388)

f) Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive
Income of Hawthorn Bhd for the year ended 31 December 2021.

Hawthorn Bhd
Consolidated Statement of Profit or Loss for the year ended 31 December 2021

Hawthorn Snowberry Plc Adjustment Group

Bhd

Revenue 264,000 128,000 392,000

Cost of Sales (184,800) (76,000) (260,800)

Gross Profit 79,200 52,000 131,200

Selling (35,200) (12,000) (47,200)

Expenses

Administrative (17,600) (20,000) (37,600)

Expenses

Depreciation (160) (160)

Forex Loss (20,923) (20,923)

Profit before tax 5,477 19,840 25,317

Taxation (10,560) (4,800) (15,360)

Profit for the (5,083) 15,040 9,957

year

Other Comprehensive Income

Forex gain 0 -

Forex gain 0 -
goodwill

Total 9,957
Comprehensive
income

PAT Attributable to

Parent 6,197

NCI 15,040 x 0.25 3,760

 9,957

TCI Attributable to

Parent -

NCI 0 + -

g) Prepare the Consolidated Statement of Changes in Equity of Hawthorn Bhd for the
year ended 31 December 2021.

Ordinary Group Asset NCI

Share Retained Revaluation
Earning Reserve
RM’000 RM’000 RM’000 RM’000

Balance b/d 110,000 91,300 22,000

Acquisition 18,810
during the year

Asset 24,640
Revaluation
Reserve during
the year

Effect on forex (5,465)

during the year

Profit for the 6,197 3,760

year

Dividend (8,580) (2,200) (W2)

Balance c/d 110,000 88,917 46,640 14,905

Working 2 = (26,400/3) x 25% = 2,200

Working 3 = 47,025/2.5 = 18,810

h) Prepare the Consolidated Statement of Financial Position of Hawthorn Bhd as at 31
December 2021.

Hawthorn Snowberry Adjustme Group

Bhd Plc nt
RM’000 RM’000 RM’000

Property, Plant 187,660 115,720 303,380

and Equipment

Investment in 83,600 eliminated -

Snowberry Plc

Goodwill 22,642

Inventory 52,800 22,000 74,800

Trade 73,260 26,033 99,293

Receivable

Bank 4,400 11,000 15,400

401,720 174,753 515,515

Ordinary Share 110,000 from g 110,000

Retained Profit 107,140 (6,820) from g 88,917

Revaluation 22,000 24,640 from g 46,640

Reserve

Non-Controlling from g 14,905

Interest

Long Term 88,000 44,000 132,000

Loans

Trade Payable 63,580 23,467 87,047

Tax Payable 11,000 10,267 21,267

Dividend 8,800 8,800

Payable

401,720 104,353 509,575