Angin Berhad has a foreign subsidiary Wind Limited, acquired on 1 January 2019, which uses the Rupees(R) as its functional currency. Details of Wind Limited are given below:

Net assets of Wind Limited at 1 Jan 2019	Rupees(R) 340,000
Net assets of Wind Limited at 1 Jan 2020	Rupees(R) 410,000
Net assets of Wind Limited at 31 Dec 2020	Rupees(R) 500,000

Wind Limited has paid no dividends since acquisition. It translates all income and expense items using the average rate for the period. Relevant exchange rates are:

1 January 2019	2.1 Rupees(R): RM1
1 January 2020	2.0 Rupees(R): RM1
31 December 2020	1.8 Rupees(R): RM1
Average rate 1 Jan 2019 – 31 Dec 2020	1.95 Rupees(R): RM1
Average rate 1 Jan 2020 – 31 Dec 2020	1.9 Rupees(R): RM1

Required:-

Calculate the exchange difference to be included in Angin Berhad's consolidated reserves for the year ended 31 December 2020. Show workings.

Answer rating: 100% (QA)

Computation of Profits earned during 2019 and 2020 in Rupees Particulars Amount Rupees Net Assets as ... View the full answer