anybody understand??

QUESTION 2 ANSWER ALL PARTS OF THIS QUESTION PART A You are a financial accountant working for Galadriol plc and are assisting with finalising the consolidated financial statements for the year ended 30 June 2021. The following matters are still outstanding: (1) On 1 January 2021, Galadriol plo acquired land costing 2million. This was paid for using a 2million loan provided by a German bank on 1 January 2021. The cost of the land and the bank loan have been translated at the average exchange rate for the year. No repayments have been made by the year end. (2) On 5 March 2021, Galadriol pic placed an order for 1.5million of goods from a European manufacturer. The goods arrived on 13 March 2021 and the involoe was correctly translated and accounted for On 31 May 2021, half of the invoice was settled. This transaction has been recorded in the consolidated financial statements using the average exchange rate for the year. No further entries have been made in respect of these transactions The spot exchange rates were as follows: 1 January 2021 1.12: 1 5 March 2021 1.15 : 1 13 March 2021 1.16:1 31 May 2021 1.19 11 30 June 2021 1.14: 1 Average for the year 1.13:1 REQUIRED: (a) Please note: the maximum word count for this requirement is 480 words. Explain the IFRS financial reporting treatment of items (1) - (2) in the financial statements of Galadriol ple for the year ended 30 June 2021, 5 PLEASE TURN OVER preparing all relevant calculations. As part of your answer you need to make reference to the relevant definitions and treatments required by the accounting standards. [12 marks]