Mello Bhd (MB), Malaysian incorporated company and operates internationally since year 2010. The functional currency is the Malaysian Ringgit. In order to expand its business activities, MB took out a loan from Darussalam Bank, a bank from Brunei for 6 million Brunei Dollar (BD) on 1 January 2020 The loan carries at fixed interest rate of 5% per annum and payable at the end of each year. The repayable period of the loan is two years and expected to fully settled on 31 December 2022.. On 1 February 2020 a new subsidiary, Techno Bhd has been acquired. The ordinary shares of Techno Bhd are denominated in the Dollar Brunei. MM acquired 80% of the Techno Bhd's shares worth 3 million BD. Techno Bhd deposited the money received from the MB in a bank in Brunei whose currency is the Brunei dollar. The money is to be used for investment purpose as instructed by MB as the parent company. Techno Bhd does not make independent decisions on the investments. Techno Bhd's operating expenses are paid in the Malaysian Ringgit. On 1 May 2020, MB acquired 70% of the equity shares of another multinational company, Sri Bangawan located on Brunei by paying RM800 million Brunei dollars. The functional currency of the acquired company is Brunei dollars with reported fair value of the net assets as at acquisition date amounting to RM870 million Brunei dollars and non-controlling interest's fair value of RM320 million Brunei dollars. Full goodwill is recognized on the acquisition. MB is preparing the financial statements for the year ending 31 December 2020. The following exchange rates are to be used: 1.1.2020 1.2.2020 1.5.2020 31.12.2020 Average for 2020 RM 3.04 3.05 3.04 3.10 3.06 BD 1 1 1 1 1 Required: Discuss how would you: a) account for the loan and interest on the loan taken from the Darussalam Bank in the financial statement of MB for the year ended 31 December 2020. (10 marks) b) determine the functional currency of Techno Bhd (15 marks) c) compute the goodwill on the acquisition of Sri Bangawan in the consolidated financial statements for the year ended 31 December 2020. (10 marks)