c. Convert Statement of Financial Position and Statement of Profit or Loss of Harper Plc into Ringgit Malaysia

d. Compute the Exchange difference arising from statement of financial position of Harper for year ended 31 December 2021

Melody Bhd is a company incorporated in Malaysia involved in designing and fabricating all marine vehicles. On 1 January 2021, Melody Bhd acquired 150 million units out of 200 million units of the issued ordinary share capital of Harper Plc. Harper Plc is operating from Zambaland where the currency is ZBD. On the date of acquisition, the fair value of the identifiable net assets of Harper Plc was ZBD 297 million. The excess of the fair value over the carrying amount of the net assets of Harper Plc on the acquisition date was due to an unrecorded revaluation reserve of land. Harper Plc's products are sold locally at selling prices denominated in ZBD and determined by local competition. All sale and operating expenses are incurred locally and paid in ZBD. Harper Plc's management has a significant degree of autonomy in carrying out the operations of Harper Plc. Harper Plc is not dependents upon Melody Bhd for financing its business activities. The following are the financial statements of Melody Bhd and Harper Plc for the year ended 31 December 2021: Statements of Financial Position as at 31 December 2021 Melody Bhd Harper Plc RM million ZBD million Property plant and equipment 2,500 300 Investment in Harper Plc 320 Inventory Trade receivables Bank 300 150 230 3,500 2,000 1,000 120 100 160 680 200 210 Ordinary shares Retained earning Other payables Trade payables 300 200 3,500 140 130 680 Statements of profit or loss for the year ended 31 December 2021 Revenue Cost of sales Gross profit Operating expenses Profit before tax Tax expense Profit after tax Melody Bhd RM million 2,000 (1,500) 500 (180) 320 (120) 200 Harper Pic ZBD million 1,300 (932) 368 (150) 218 (100) 118 Melody Bhd Statement of changes in equity for the year ended 31 December 2021 Ordinary shares RM million 2,000 Balance b/d Profit for the year Dividend Balance c/d Retained earnings RM million 900 200 (100) 1,000 2,000 Harper Plc Statement of changes in equity for the year ended 31 December 2021 Ordinary shares Retained earnings ZBD million ZBD million Balance b/d 200 92 Profit for the year 118 Balance c/d 200 210 Additional Information: 1. Harper Plc acquired a piece of freehold land amounting to ZBD10 million on 1 July 2021. 2. On 1 July 2021, Melody Bhd has sold goods to Harper Plc amounting to RM20 million on credit. The related amounts due were fully paid by Harper Plc on 1 November 2021. However, Harper Plc did not make any adjustments in relation to the foreign exchange differences on that date and the gain or loss arising from the payment is still in its trade payables account. By 31 December 2021, Harper Plc has sold all items purchased from Melody Bhd to its customers. The group's policy is to charge a profit margin for the inter- company sale at a cost-plus of 25%. 3. All income and expenses are deemed to accrue evenly during the year unless stated otherwise. 4. The group measures the non-controlling interests based on its proportionate share of the subsidiary's net assets on the acquisition date. 5. The following are the exchange rates that are relevant for the preparation of the financial statements: 1 January 2021 1 July 2021 1 November 2021 31 December 2021 Average for 2021 RM: ZBD1 1.2 1.3 1.6 1.5 1.8 C. Translate the statement of financial position and the statement of profit or loss for Harper Plc into Ringgit Malaysia to prepare the consolidated financial statements of Melody Bhd for the year ended 31 December 2021. Compute the exchange difference arising from the translation of the financial statements of Harper Plc for the year ended 31 December 2021. . d