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Please help me i will give good rating (a) Dilam operates in Country ABC and has established the RM as its functional currency. On 20
Please help me i will give good rating
(a) Dilam operates in Country ABC and has established the RM as its functional currency. On 20 November 2020, Dilam acquired a piece of machinery from Pika, an overseas supplier, at a cost of P$4.5 million. At the year ended 31 December 2020, the invoice remained unpaid. Relevant exchange rates (where RM/P$ 4.00 means RM 1 = P$4.00) are: 20 November 2020 31 December 2020 RM/P$4.00 RM/P$4.51 Required: In accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates, explain how Dilam would have established the RM as its functional currency. (11) Calculate the amount to be included in the financial statements of Dilam for the year to 31 December 2020 in accordance to the above transactionStep by Step Solution
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