Usahamaju Bhd is a public company supplying electrical hardware and
services especially in installing broad kind of electrical appliances and equipment. The company had successfully obtained a government project for installing electrical equipment in hospitals in Selangor. The group accountant, Encik Ahmad is discussing with the directors of Usahamaju Bhd related to the application of MFRS10 Consolidated Financial Statements, MFRS11 Joint Arrangements and MFRS128 Investments in Associates and Joint Ventures in preparing the group financial statements.
A contractual agreement between Usahamaju Bhd, Exact Bhd and Berkat Bhd empowers them to jointly control TG Bhd. The three companies invested in TG Bhd in order to complete the project as scheduled. Decisions related to the relevant business activities of TG Bhd should have unanimous consent of all the companies sharing the control. Since Usahamaju Bhd is the highest investor of 40% in TG Bhd, Encik Ahmad was contented with an idea that the investment in TG Bhd should apply the acquisition method and the financial statements of TG Bhd should be consolidated with Usahamaju Bhd in accordance with MFRS10 Consolidated Financial Statements.
State your opinion on Encik Ahmad's view related to above issue. Discuss your opinion with reference to the relevant MFRSs. (MFRS10 Consolidated Financial Statements, MFRS11 Joint Arrangements and MFRS128 Investments in Associates and Joint Ventures)
416,475 students got unstuck by Course
Hero in the last week
Our Expert Tutors provide step by step solutions to help you excel in your courses