Question: Foreign Currency Translation - Problem based Question LMVH is a French parent company reporting in Euro currency. The company invested AED 3600,000 on 17 January

Foreign Currency Translation - Problem based Question LMVH is a French parent company reporting in Euro currency. The company invested AED 3600,000 on 17 January 2021 in A Uuraina, a UAE subsidiary. The UAE subsidiary took a local loan of AED 2400 000 and beys Plant and Equipment for AED 6000000. AUuraina reports a profit of AED 500000 for the year ended 31 " December 2021 . The exchange rates between Euro and AED are as follow: The Statement of Financial Position (Balance. Sheet) of AUuraina in AED is as given below: Rcquired: Using IAS 21, translate the Balance Sheet of AUuraina from AED to EURO using (i) Temporal Method and (ii) Closing Rate Method. ( 6 marks) Assume that you are the CEO of AJuraina, which translation method do you prefer and why? (2 marks) Foreign Currency Translation - Problem based Question LMVH is a French parent company reporting in Euro currency. The company invested AED 3600,000 on 17 January 2021 in A Uuraina, a UAE subsidiary. The UAE subsidiary took a local loan of AED 2400 000 and beys Plant and Equipment for AED 6000000. AUuraina reports a profit of AED 500000 for the year ended 31 " December 2021 . The exchange rates between Euro and AED are as follow: The Statement of Financial Position (Balance. Sheet) of AUuraina in AED is as given below: Rcquired: Using IAS 21, translate the Balance Sheet of AUuraina from AED to EURO using (i) Temporal Method and (ii) Closing Rate Method. ( 6 marks) Assume that you are the CEO of AJuraina, which translation method do you prefer and why? (2 marks)

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