Ray International Limited is a manufacturing company, with a wholly owned subsidiary M Distribution BV operating in a foreign country. The draft financial statements of the parent company in €s and of the foreign subsidiary in its currency (DFL) for the year ended 31 December 2017 are as follows:

STATEMENTS OF PROFIT OR Loss AND OTHER COMPREHENSIVE INCOME for the Year Ended 31 December 2017

Additional Information:
1. M Distribution BV was incorporated and commenced trading on 1 January 2017. All property, plant and equipment was purchased on that date.
2. The relevant DFL exchange rates are as follows:

(a) 1 January 2017 3.0 DFL to €1

(b) 31 December 2017 4.0 DFL to €1

(c) Average for 2017 3.5 DFL to €1 3. The profit before taxation figure of the parent company includes dividend income from the subsidiary of €125,000.
4. The current assets of the parent company include a balance due from the subsidiary in respect of sales invoiced to the subsidiary in €s, of €382,000. The corresponding liability in the books of the subsidiary is recorded at DFL1,381,000.
5. The revenue figure of the parent company includes sales to the subsidiary of €2,450,000.
There are no inter-company profits in inventory.
Requirement You are required to prepare the consolidated statement of profit or loss and other comprehensive income and the consolidated statement of financial position of Ray International Limited and its subsidiary for the year ended 31 December 2017 assuming that the functional currency of M Distribution BV is different from the functional currency of Ray International Limited.

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Revenue Profit before taxation Income tax expense Profit for year Balance at beginning of year Dividends paid during year Balance at end of year Assets M Distribution BV Ray International Limited DFL000 000 12,600 1,750 (210) 1,540 10,871 2,600 (1,300) 1,300 480 (500) 1,040 STATEMENTS OF FINANCIAL POSITION as at 31 December 2017 DFL000 1,780 000 Non-current assets Property, plant and equipment 600 3,240 Investment in M Distribution Current Assets Inventory 400 600 3,640 2,020 2,390 Other 1,164 1,472 3,184 3,862 Total assets 3.784 7,502 Equity and liabilities Equity