Delta Bhd., a company incorporated in Malaysia with

Delta Bhd., a company incorporated in Malaysia with presentation currency in Ringgit Malaysia (RM) acquired 85% shareholdings in Carrie Ltd, a company incorporated in Fairyland on 1 February 2018. Carrie Ltd.’s functional currency and presentation currency is E$.

The trial balance of Carrie Ltd as at 31 December 2019 is set out below:

Debit

Credit

E$

E$

Trade Receivables

        162,890

Revaluation reserve

        159,900

Revenue

     1,235,260

Inventories as at 31 December 2019

        131,560

Research expenses

          16,640

Interest expenses

        123,500

Cost of sales

        462,800

Investment income

          20,540

7% Bonds

        187,200

Current tax payable

          30,550

Income tax expenses

        127,530

Interim dividend paid

          59,670

General reserve

        234,650

Retained earnings as at 31 December 2018

        364,650

Distribution costs

        127,660

Administrative expenses

        160,420

Investment property

       767,910

Development costs

        128,310

Trade Payables

          173,420

Short term borrowing

            40,560

Deposit, cash and bank balances

          87,490

Property, plant and equipment

     1,721,850

Ordinary shares capital

       1,631,500

     4,078,230

     4,078,230

Additional information:

  1. As at the date of acquisition, Carrie Ltd.’s net assets were represented by share capital of E$1,631,500, revaluation reserve of E$117,000, general reserve of E$178,100 and retained earnings of E$175,800.

  1. Exchange rates at the relevant dates were as follows:

Exchange rate

1 February 2018

E$1 :

RM2.20

Average for 2018

E$1 :

RM2.30

31 December 2018

E$1 :

RM2.25

Average for 2019

E$1 :

RM2.60

31 December 2019

E$1 :

RM2.40

Post-acquisition

E$1 :

RM2.81

REQUIRED:

Account for the above information from the trial balance into a Statement Of Comprehensive Income for the year ended 31 December 2019 and a Statement Of Financial Position as at that date of Carrie Ltd for incorporation into consolidated financial statements of Delta Bhd expressed in E$ and RM, in compliance with IAS 21 “ The effect of Changes in Foreign Exchange Rate”.