If Company Y’s functional currency is the dollar, and Company Y’s financial statements are to be consolidated into Solitaire’s group financial statements, what is the net exposed amount in FC units as at 31 December 20x1 that may give rise to gains or losses as a result of exchange rate movements?

(a) Net assets of FC 1,160,000

(b) Net monetary assets of FC 110,000

(c) Net monetary assets of FC 1,110,000

(d) Net assets of FC 160,000 The information below relates to Company Y, a foreign subsidiary of Solitaire Corporation. Company Y records its books in FC, the currency of the country in which it operates.

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Net assets at 1 January 20x1.. Net monetary assets/(liabilities) at 1 January 20x1. Transactions during the year: Sales during 20x1..... Salaries, rent and utilities during 20x1. Depreciation of office furniture.. Unearned revenue received during the year. Issue of new shares for cash.... Exchange rates at the following dates: At date of purchase of office equipment (30 June 20x0). 1 January 20x1 Average rate... At date of receipt of unearned revenue. At date of issue of new shares 31 December 20x1 FC 60,000 (100,000) 500,000 350,000 50,000 60,000 1,000,000 FC 1: $ 0.58 0.60 0.55 0.48 0.50 0.50