Note: Need to answer the subquestions C, D, E, if can answer more little bit additional for other sub-questions, I will be appreciated it so much!

QUESTION On 1 January 2019, Mache Bhd acquired 75% of the issued ordinary shares of Naro Plc, situated in the Narathiwat, Thailand, where the currency is the Thai Baht (THB). On that date, the retained profits of Naro Plc were THB500,000. The carrying amount of its net assets reflected its fair value. The main activity of Naro Plc is related to agricultural activities, including the processing of food products from farm produce. Profits are used to reinvest in the business for expansion purposes. The remittances of cash to the Malaysian parent are in the form of dividends. The financial statements of Mache Bhd and Naro Plc for the year ended 31 December 2020 and 2019 are as follows: Mache Bhd Statement of Financial Position as at 31 December 2020 RM'000 2019 RM'000 EQUITIES AND LIABILITIES Ordinary shares 16,600 16,600 Retained earning 25,400 7,400 Long term loan Payables 5,000 1,400 48,400 7,000 1,200 32,200 25,000 10,000 17,000 10,000 ASSETS Plant and equipment Investment in Naro Plc Inventory Receivables Bank 1,500 1,300 10,600 48,400 2,500 800 1,900 31,200 Mache Bhd Statement of Profit or Loss for the year ended 31 December 2020 RM'000 96,000 2019 RM'000 65,300 Revenue Less: Cost of sales: Opening inventories Purchases Closing inventories Gross profit Depreciation General expenses Tax expense Profit for the year 2,500 59,000 (1,500) 60,000 36,000 (4,500) (10,000) (3,500) 18,000 1,200 51,300 (2,500) 50,000 15,300 (2,000) (8,500) (300) 4,500 Naro Plc Statement of Financial Position as at 31 December 2020 THB'000 2019 THB'000 EQUITIES AND LIABILITIES Ordinary shares Retained earning 21,000 4,000 21,000 2,500 Long term loan Payables 5,000 1,200 31,200 5,500 900 29,900 ASSETS Plant and equipment Freehold land 15,500 4,500 18,500 4,500 Inventory Receivables Bank 4,600 2,000 4,600 31,200 2,600 1,700 2,600 29,900 Naro Plc Statement of Profit or Loss for the year ended 31 December 2020 THB 50,300 2019 THB'000 52,400 Revenue Less: Cost of sales: Opening inventories Purchases Closing inventories Gross profit Depreciation General expenses Tax expense Profit for the year 2,600 40,000 (4,600) 38,000 12,300 (3,000) (7,500) (300) 1,500 1,900 41,200 (2,600) 40,500 11,900 (3,000) (6,500) (400) 2,000 Additional information 1. Naro Plc acquired all the property, plant and equipment on 1 January 2017 2. All property, plant and equipment (except for the freehold land) are depreciated on a straight- line basis to write off the cost of each asset over their estimated useful lives. 3. In December 2020, Mache Bhd and Naro Plc respectively had declared final ordinary dividends of RM1,500,000 and THB600,000 for the financial year ended 31 December 2020. However, no records have been made in respect of the dividend. Both companies have not declared any dividend for the financial year ended 31 December 2019. 4. It is the group's policy to value the non-controlling interest at acquisition at its proportionate share of the fair value of the subsidiary's net assets. 5. The profit and loss are accrued evenly throughout the years. 6. The following are the exchange rates that is relevant for the preparation of the financial statements: 1 January 2017 1 January 2019 1 January 2020 31 December 2020 Average for the year ended 31 December 2019 Average for the year ended 31 December 2020 THB to RM1 2.15 2.00 2.40 2.75 2.30 2.50 Required: a. b. C. d. Determine the functional currency of Naro Plc. and explain your choice. Recommend the most appropriate method to translate the financial statements of Naro Plc in accordance with MFRS 121, The Effects of Changes in Foreign Exchange Rates. Calculate the gain or loss on translation of goodwill arising from the acquisition of Naro Plc for the year ended 31 December 2020. Translate the statement of financial position and the statement of profit or loss for Naro Plc into Ringgit Malaysia to prepare the consolidated financial statements of Mache Bhd for the year ended 31 December 2020. Compute the exchange difference arising from the translation of the financial statements of Naro Plc for the year ended 31 December 2020. Prepare the consolidated statement of profit or loss of Mache Bhd for the year ended 31 December 2020. Prepare the consolidated statement of changes in equity of Mache Bhd for the year ended 31 December 2020. Prepare the consolidated statement of the financial position of Mache Bhd as at 31 December 2020. e. f. g. h. Note: You should show all workings to the nearest RM '000