Problem: The effects of Changes in Foreign Exchange Rates

On January 1, 20x1, JKL Co., acquired 90% interest in Sakura Co., a Japanese company,for Y100,000.Sakura's functional currency is the yen. On acquisition date, Sakura's net identifiable assets had a carrying amount of $90,000, equal to fair value. NCI is measured using the proportionate share method. The relevant exchange rates are as follows:

Problem: The effects of Changes in Foreign Exchange Rates On January 1, 20x1, JKL Co., acquired 90% interest in Sakura Co., a Japanese company for Y100,000. Sakura's functional currency is the yen. On acquisition date, Sakura's net identifiable assets had a carrying amount of $90,000, equal to fair value. NCI is measured using the proportionate share method. The relevant exchange rates are as follows: Date Exchange Rates Jan 1, 20x1 $0.50 Y1 Average for the year $0.52 . Y1 Dec 31, 20x1 $0.54 : Y1 A summary of the individual financial statements of the entities at the end of the reporting period are shown below: Statements of Financial Position As at December 31, 201x1 Assets JKL Co. (dollars) Sakura Co (yens) Investment in subsidiary 50,000 Other assets 1,500,000 140,000 Total Assets 1,550,000 140,000 Liabilities and Equity Liabilities 250,000 20,000 Share Capital 800,000 80,000 Retained Earnings 500,000 40,000 Total Equity 1,300,000 120,000 Total Liabilities and Equity 1,550,000 140,000 Statements of Profit or Loss For the year ended December 31, 20x1 JKL Co. (dollars) Sakura Co (yens) Revenues 1,200,000 150,000 Expenses (500,000) (120,000) Profit for the year 700,000 30,000 There were no changes in the subsidiary's share capital during the year. Requirement: Prepare the consolidated financial statements