Question 5 (20 marks) Bravo and Brave Limited (B&B) operates in Brilliant which has very high inflation rate. Brilliant is considered as a hyperinflationary economy. Its currency is B dollar. Below are the financial statements for the year ended 30 June 2019. Statement of profit or loss for the year ended 30 June 2019. B$'000 Sales 500 Cost of sales 320 Gross profit 180 Expenses 80 Net profit 100 Taxation 30 Profit after tax 70 B$'000 750 120 Machinery Inventory Accounts receivable Cash Share capital Retained earnings b/f P/L B$'000 650 195 70 125 55 Accounts payable 915 145 1060 1060 The index rates which measure inflation prevailing for the various accounts are as follows. Index rate Transaction date Share capital Machinery Retained earnings Inventory 150 160 195 180 Year end Average 240 200 Required: In accordance with HKAS 29 Financial Reporting in Hyperinflationary Economics, a) Prepare an adjusted income statement for B&B for the year ended 30 June 2019 without gain or loss on monetary position. (4 marks) b) Using your results in (a) and other necessary information, calculate the gain or loss on monetary positon of B&B for the year ended 30 June 2019. (5 marks) c) Using your results in (a) and (b), prepare an adjusted income statement for B&B for the year ended 30 June 2019 with the gain or loss on monetary positon. (3 marks) d) Prepare an adjusted balance sheet as at 30 June 2019 for B&B. (8 marks)