Part A Ash is a wholly owned French subsidiary of a UK parent company called Oak. Oak acquired Ash on 31 December 2015 for 550k (with no fair value adjustments) and both companies have a year end of 31 December. Ash has a functional currency of the euro and Oak presents its consolidated accounts in sterling (GBP). Summary financial statements for Ash are presented below. Summary income statement Sales Cost of sales Gross Profit Operating expenses Profit before tax Tax Profit after tax 31/12/2016 000 2,000 1,400 600 400 200 100 100 31/12/2015 31/12/2016 Summary Statement of Financial Position 000 000 Non current assets 600 650 Current assets 300 350 900 1,000 Current liabilities 250 300 Non current liabilities 100 75 Share capital 200 200 Retained Profit 350 425 900 1,000 Ash paid a dividend on 30 June 2016 of 25,000. The exchange rates were as follows: 31 December 2015 1=1.50 30 June 2016 1=1.42 31 December 2016 1=1.40 Average rate during 2016 1=1.45 Required: 1.1 Translate the summary financial statements for Ash in preparation for consolidation within the Oak group. (15%) 1.2 Explain what factors are considered in determining the functional currency of Ash under IAS21. (5%)