Question No 1 XYZ Company involved in extractions of minerals established in Oman has their business all over the world. They extract the minerals in Oman and export to their processing centres in other countries who in tum process it and sell in the market. The income statement of their centres in two of those countries are given below.. Bahrain Particulars Newzealand Dollar Dinar Income from sales 2515458 7546374 processing 452358 1357074 Wages 2515475462 Factory rent 34535 103605 Gross profit 20034116010233 Distribution cost 452154 1356462 Office expenses 24535 73605 Discount on shares written off 45245 135735 Depreciation of Tools 12545 37635 Net Profit 14689324406796 a) You are required to translate the above income statement to reporting currency using Monetary Non-monetary Method with the following rates (6 Marks) Current Rate Historical rate Average Rate OMR/BHD 1.02261 1.04568 1.034145 NZD OMR 4.3018 4.8123 4.55705 b) Will there be any difference in the profit if they use Current non-current rate method. If so which items in the statement contributes to those differences. How much will be the difference in the profit between these two methods? Explain the reason for differences in your own words. (4 marks)