Question 4 (a) A Ringgit Malaysia-based company, Kipas Berhad, set up a foreign subsidiary on 30 June 2018. Kipas Berhad subscribed 24 000 for share capital when the exchange rate was 2 = RM1. The subsidiary, Fan Inc, borrowed 72 000 and bought a non-monetary asset for 96 000. Kipas Berhad prepared its financial statements on 31 December 2018 and by that time the exchange rate had moved to 3 = RM1. Required:- Prepare Fan Inc's statement of financial position at 31 December 2018 in both euros and Ringgit Malaysia (RM), and calculate the exchange gain or loss arising since 30 June 2018. [11 marks) (b) Angin Berhad has a foreign subsidiary Wind Limited, acquired on 1 January 2019, which uses the Rupees(R) as its functional currency. Details of Wind Limited are given below: Net assets of Wind Limited at 1 Jan 2019 Rupees(R) 340,000 Net assets of Wind Limited at 1 Jan 2020 Rupees(R) 410,000 Net assets of Wind Limited at 31 Dec 2020 Rupees(R) 500,000 Wind Limited has paid no dividends since acquisition. It translates all income and expense items using the average rate for the period. Relevant exchange rates are: # 1 January 2019 1 January 2020 31 December 2020 Average rate 1 Jan 2019 - 31 Dec 2020 Average rate 1 Jan 2020 - 31 Dec 2020 2.1 Rupees(R): RM1 2.0 Rupees(R): RM1 1.8 Rupees(R): RM1 1.95 Rupees(R): RM1 1.9 Rupees(R): RM1 Required:- Calculate the exchange difference to be included in Angin Berhad's consolidated reserves for the year ended 31 December 2020. Show workings. [14 marks)