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.

2. 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”.

Answer rating: 100% (QA)

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