SECTION B - Problem Based (10.55am to 11.25am AND Submission time until 11.35am) QUESTION 2 Vixen Bhd. is a local Malaysian company whose functional currency was Ringgit Malaysia (RM). The company often obtained its supplies of goods from an overseas supplier in Australia. The company also has some customers in Australia, On 1 November 2019, Vixen Bhd. had purchased an investment property for AUD$28 million. At the year end, the investment property had a fair value of AUD$24 million. It was the company's policy to subsequently value all of its investment properties using the fair value model in accordance with the approved financial reporting standard for investment properties. On 30 June 2020, Vixen Bhd. entered into a contract to purchase a special container to store its goods in Australia for AUD$4 million. A non-refundable deposit of AUD$1 million was paid by the company upon signing the purchase contract with the remaining balance payable on 31 July 2020. On 31 July 2020, the company purchased goods amounting to AUD$8 million. At the year end, the goods were still held by Vixen Bhd, and the amount payable for the goods was yet to be paid. On 31 July 2020, Vixen Bhd. had sold goods to a foreign customer for AUD$4 million. The company received payment for sales on 31 October 2020 in AUD$. The exchange rates were: Exchange rates 1 AUDS : RM Average (1 AUDS : RM) 1.11.2018 2.2 31.10.2019 2.4 1.11.2019 2.8 31.7.2020 31.10.2020 2.6 3.0 2.8 3.2 a. Discuss on how Vixen Bhd. should account for the above transactions in the company's financial statements for the year ended 31 October 2020, (9 marks) b. A functional currency for Vixen Bhd. is Ringgit Malaysia (RM). State how an entity shall determine the functional currency if the indicators of a particular currency is NOT obvious or easily determinable. (1 mark) [Sub-total = 10 marks [30 minutes)