could you solve this question please

on January 2015 Star Ld acquired 75% of the ordinary shares of Shine Lidin Hong Kong to form Star-Shine Group (SSG) At that date the balance on the retained eamings of Srine Ltd was Hong Kong Dollar (HK$) 1.700.000 The non control ng Interest in Shine was measured as the proportionate share of the net assets of the Subscary No shares have been issued by Shine since acquiston The summarised income statements and balance sheets of Star Lid and Shine Ltd as at 31 December 2019 were as 'dows Income Statement for the year ended 31 December 2019 Star Shine GBE HKS Sales 37 422 000 9 504 000 Opening inventores 4 158.000 1.259 280 Purchases 20.790.000 5 346.000 Closing inventories 1.485 000 1.021 580 Cost of sales 23.463.000 5.583.600 13.959.000 3.920.400 Gross profit Depreciation Other expenses Interest paid Total expenses 2.376.000 629 640 415.800 3.421 440 712.800 237 600 118.800 1.069 200 Profit before tax Taxation Profit after tax Tutorial 5 10.537,560 2,673,000 7,864 560 2.851.200 712.800 2.138.400 36 subsid Shine HK$ 5.464.800 Balance Sheet as on 31 December 2019 Star GBE Non-current assets 8,316,000 Investment in Shine Ltd 267300 Current assets: Inventories 1,485.000 Trade receivables 3,593,700 Shine Ltd 85,950 Cash 653,400 Total current assets 5,818,050 Total Assets 14,401,350 1,021,680 1,306,800 47 520 2,376,000 7,840,800 Ls, LE 3 Tutorials Current habilities: Trade payables Star Ltd Taxation Total current liabilities Debentures Total assets less liabilities 3,564.000 1.069.200 880.998 1.188.000 831.600 4,752,000 2.781.788 2,970.000 950.400 6,679 350 4,108,612 Capital and reserves Share capital 2.922,300 359,750 Retained earnings 3.757,050 3,748,862 6,679,350 4,108,612 The following further information is available: 0 An amount of HK$ 200,000 was written off goodwill as an impairment charge in the current year and HK$ 140,000 in the previous year. (ii) On 23 March 2019, Star Ltd sold goods 2,250,000 to Shine Ltd, making a profit of 20% on cost. At the year end, one third of these raw materials were still in the inventory of Shine Ltd, and the inter-company transactions have not been eliminated from the financial statements. The goods were recorded by Shine at the exchange rate ruling on 23 March 2019. (iii) - HR Exchange rates were as follows: At 1 January 2015 Average for the year ending 31 December 2019 At 31 December 2018/ 1 January 2019 At 31 December 2019 GB 1= HK$ 15.52 GB 1= HK$ 10.05 GBE 1= HK$ 9.92 AveR GB 1= HK$ 10.25 nopeing closing Required: (a) If the functional currency of Shine Ltd is HK$, which translation method is applicable to translate Shine's financial statements to GB and why? (b) Showing clearly all your workings: (0) (ii) (iii) Calculate the goodwill arising from the acquisition of Shine Ltd in GB. Compute SSG's retained earnings and non-controlling interest as at 31 December 2019. Prepare SSG's Consolidated Income Statement for the year ended 31 December 2019. Prepare SSG's Consolidated Balance Sheet for the year ended 31 December 2019. (20 marks) (iv) on January 2015 Star Ld acquired 75% of the ordinary shares of Shine Lidin Hong Kong to form Star-Shine Group (SSG) At that date the balance on the retained eamings of Srine Ltd was Hong Kong Dollar (HK$) 1.700.000 The non control ng Interest in Shine was measured as the proportionate share of the net assets of the Subscary No shares have been issued by Shine since acquiston The summarised income statements and balance sheets of Star Lid and Shine Ltd as at 31 December 2019 were as 'dows Income Statement for the year ended 31 December 2019 Star Shine GBE HKS Sales 37 422 000 9 504 000 Opening inventores 4 158.000 1.259 280 Purchases 20.790.000 5 346.000 Closing inventories 1.485 000 1.021 580 Cost of sales 23.463.000 5.583.600 13.959.000 3.920.400 Gross profit Depreciation Other expenses Interest paid Total expenses 2.376.000 629 640 415.800 3.421 440 712.800 237 600 118.800 1.069 200 Profit before tax Taxation Profit after tax Tutorial 5 10.537,560 2,673,000 7,864 560 2.851.200 712.800 2.138.400 36 subsid Shine HK$ 5.464.800 Balance Sheet as on 31 December 2019 Star GBE Non-current assets 8,316,000 Investment in Shine Ltd 267300 Current assets: Inventories 1,485.000 Trade receivables 3,593,700 Shine Ltd 85,950 Cash 653,400 Total current assets 5,818,050 Total Assets 14,401,350 1,021,680 1,306,800 47 520 2,376,000 7,840,800 Ls, LE 3 Tutorials Current habilities: Trade payables Star Ltd Taxation Total current liabilities Debentures Total assets less liabilities 3,564.000 1.069.200 880.998 1.188.000 831.600 4,752,000 2.781.788 2,970.000 950.400 6,679 350 4,108,612 Capital and reserves Share capital 2.922,300 359,750 Retained earnings 3.757,050 3,748,862 6,679,350 4,108,612 The following further information is available: 0 An amount of HK$ 200,000 was written off goodwill as an impairment charge in the current year and HK$ 140,000 in the previous year. (ii) On 23 March 2019, Star Ltd sold goods 2,250,000 to Shine Ltd, making a profit of 20% on cost. At the year end, one third of these raw materials were still in the inventory of Shine Ltd, and the inter-company transactions have not been eliminated from the financial statements. The goods were recorded by Shine at the exchange rate ruling on 23 March 2019. (iii) - HR Exchange rates were as follows: At 1 January 2015 Average for the year ending 31 December 2019 At 31 December 2018/ 1 January 2019 At 31 December 2019 GB 1= HK$ 15.52 GB 1= HK$ 10.05 GBE 1= HK$ 9.92 AveR GB 1= HK$ 10.25 nopeing closing Required: (a) If the functional currency of Shine Ltd is HK$, which translation method is applicable to translate Shine's financial statements to GB and why? (b) Showing clearly all your workings: (0) (ii) (iii) Calculate the goodwill arising from the acquisition of Shine Ltd in GB. Compute SSG's retained earnings and non-controlling interest as at 31 December 2019. Prepare SSG's Consolidated Income Statement for the year ended 31 December 2019. Prepare SSG's Consolidated Balance Sheet for the year ended 31 December 2019. (20 marks) (iv)