please answer regarding the question above

Required:

(a) Explain how foreign currency risk will impact the process of preparing group accounts? (4 Marks)

Zalti Group, a large Omani group of company, bought 80 percentage of the ordinary shares of Tattoo an UAE based company, for AED190 million on 31st December 2020. The retained earnings of Tattoo at this date were AED 75 million. The fair value of the non-controlling interest at the acquisition date was AED 15 million. The financial statements of Zalti Group and Tattoo for the year ended 31st December 2021 are presented below:- Page 5 of 9 Statement of profit and loss account for the year ended 31st December 2021 Statement of financial position as at 31 st December 2021 There has been no intra group trading. Goodwill arising on the acquisition of Tattoo is not impaired. The presentation currency of the consolidated financial statement is the dollar. Exchange rates are as follows: - Page 6 of 9 Required (a) Explain how foreign currency risk will impact the process of preparing group accounts? (4 Marks)