The business world has become highly competitive these days. Investors are demanding more from their investments, and companies are striving to dominate and grow in international markets. This has led to many companies acquiring subsidiaries in foreign territories to improve their competitive advantage. Concurrently, for companies (parents) that are required to prepare and present consolidated financial statements, this poses an additional assignment of translating the financial statements of foreign subsidiaries before consolidating them with the parents financial statements. Required: With regard to the principles of IAS 21 The Effects of Changes in Foreign Exchange Rates (Plus any other relevant International Financial Reporting Standard, i.e., IAS or IFRS), in not more than 1000 words explain how the following items in the foreign subsidiary's financial statements will be dealt with (i.e., translated to presentation currency) in the process of consolidating them with the parent. 1. Assets and Liabilities 2. Equity items 3. Income and expenses 4. Intra-group Transactions