b. Entity A is a stand-alone entity (it is not part of a group). Its functional currency is CU. However, Entity A is required by law to present its financial statements in USD, which is the local currency of the country in which it operates. Entity A has a 31 December financial year-end.

The exchange rates: at 31 December 20X1 and 31 December 20X2 are CU1 = USD2 and CU1 = USD2.2 respectively.

In 20X2 Entity A paid a dividend of CU3,000 when the rate of exchange was CU1 = USD2.25.

The share capital was issued when the exchange rate was CU1 = USD1.8.

Statement of comprehensive income for the year ended 31 December 20X2

CU

Required:

i-Prepare a Translated Income Statement using USD currency showing the Translated Profit for the year.

ii- If the Translation difference converting from CU TO USD IS 12,700, what is the Total Comprehensive Income for the year ended 20X2?