June 2009 P2 Q 1 (without note 4)

Working
1)Fair value of identifiable net assets ($ m)
Others 400
Less : Share capital (220) Dr Land 40
Retained earnings (136) Cr FV adj 40
Other component of equity (4)
increase in the value of non-depreciable land 40
Goodwill calculation - Message Total
$m
Consideration transferred 300
NCI at fair value 86
386
Share of net assets at fair value (400)
Bargain purchase (14)
Bargain purchase of $14m is recognised to consolidated statement of profit or loss
2)Fair value of identifiable net assets ($ m)
Others 176
Less : Share capital (100) Dr PPE 14
Retained earnings (55) Cr FV adj 14
Other component of equity (7) Dr RE (Mixted) 2
increase in the value of PPE 14 Cr PPE 2
Dr RE (Mixted) 0.6
Cr DTL 0.6
Goodwill calculation - Mixted Total
$m
Consideration transferred
6% 10
6% - gain on remeasurement 5 Dr Inv in mixted 5
64% 118 Cr RE (B) 5
Contingent consideration 12
Dr Inv in mixted 12
NCI at fair value 53 Cr Cont liab 12
198
Share of net assets at fair value (176) Dr FV adj 3
Deferred tax (176-166)x30% 3 Cr DT 3
Goodwill 25
3) Investment in associate as at 31 May 2009
$m
Cost of investment (9+11) 20 Dr Inv in clarity 2.5
Share of post acquisition profit (10 x 25%) 2.5 Cr RE (B) 2.5
22.5 Dr AFS R 1
Note : $1m of AFS reserve reclassified to consolidated SPL and to Group RE Cr RE (B) 1
4) Inventories
Selling price of units 1,450
Less selling costs (10)
NRV at finished products 1,440
Less conversion costs (500)
NRV at 1st stage 940
Write down
200,000 units x (1,500 1,440) 12 Dr RE (B) 18
100,000 units x (1,000 940) 6 Cr Inventory 18
18
5) Reclassification of loan to director
Dr Loan to director 1
Cr Cash and cash equivalent 1
6) Group retained earning
$m
Bravado 240.0
Adjustments :-
Bargain purchase realised (W1) 14.0
Gain on remeasurement (W2) 5.0
Associate profit (W3) 2.5
AFS reserves realised (W3) 1.0
Inventory write down (W4) (18.0)
244.5
Message ($150m-$136m) x 80% 11.2
Mixted ($80m-$55m -2+0.6) x 70% 16.5
272.2
7) Non controlling interest
Message $m
FV at date of acquistion 86.0
Post acq reserves ($150m-$136m) x 20% 2.8
Mixted
FV at date of acquistion 53.0
Post acq reserves ($80m-$55m -2+0.6) x 70% 7.1
148.9
Bravado Group - Consolidated Statement of Financial Position as at 31st May 2009
$m
Non current assets (265+230+161+40 w1+14 -2 w2) 708.0
Goodwill 25.0
Investment in associate 22.5
AFS investment (51+6+5) 62.0
817.5
Current assets
Inventories (135+55+73-18 w4) 245.0
Trade receivables (91+45+32) 168.0
Loan to directors w5 1.0
Cash and cash equivalents (102+100+8-1 w5) 209.0
1,440.5
Share capital 520.0
Retained earnings (W6) 272.2
Other components of equity (12-1) 11.0
803.2
Non controlling interest (W7) 148.9
Total equity 952.1
Non current liabilities
Long term borrowing (120+15+5) 140.0
Deferred tax (25+9+3+3-0.6 w2) 39.4
Current liabilities
Trade and other payable (115+30+60+12 w2) 217.0
Current tax payable (60+8+24) 92.0
2,392.6