On 1 January 2015, Homer Limited ("Homer"), a company incorporated in Hong Kong, acquired 80% share capital of Bambi Limited ("Bambi"), a company located in Singapore, when the retained profits of Bambi was S$1,500,000. The functional currency and presentation currncy of Homer are Hong Kong dollar (HKD). The functional currency of Bambi Limited is Singaporean dollars (SS) The statements of profit or loss of Homer and Bambi for the year ended 31 December 2016 were as follows: Homer Bambi HKD S$ $000 S000 Revenue 8,500 1,000 Cost of sales (4,800) (550) Gross profits 3,700 450 Operating expenses Profits before tax (180) (1,200) 2,500 270 Taxation (60) (400) Profits for the year 210 2,100 The statements of financial position of Homer and Bambi at 31 December 2016 were as follows: Bambi Homer Ss HKD s000 s000 12,000 8,600 Investment in Bambi 2,800 1,200 Other non-current assets (net) 1,900 Current assets (600) 3,400 (2,050) 20,450 Less: current liabilities Equity and liabilities Ordinary share capital Retained profits at 1 January 2016 Retained profits for the year 1,000 10,000 8,350 2,190 210 2,100 3,400 20,450 Additional information: Assume all transactions are evenly incurred throughout the year. () (i) An impairment loss test of goodwill conducted on 31 December 2016 showed that goodwill arising from the acquisition of Bambi has not been impaired. Non-controlling interest is measured using the net assets approach. (iii) The exchange rates during the year were HKD 1 January 2015 5.8 31 December 2015 6.5 31 December 2016 6.0 Average rate for 2016 6.2 Required: (a) Translate the financial statements of Bambi as at 31 December 2016 from Singaporean dollars (SS) to HKD. (b) Reconcile the translation difference and discuss the reasons for the exchange gains or loss arising on the consolidated financial statements of Homer as at 31 December 2016 Determine the goodwill to be shown on the consolidated statement of financial position of Homer and the exchange gain/loss on translating goodwill. (c)