The income statements for HIM and HER for the year ended 31 December 2021 are shown below:

Question 2: (10) The income statements for HIM and HER for the year ended 31 December 2021 are shown below: Revenue Cost of sales Gross profit Distribution costs Administrative expenses Other income Profit before tax Income tax expenses Profit for the year HIM AR000 5 200 (3 200) 2000 (800) (450) 80 830 (250) 580 HER Crowns000 4 500 (3 000) 1 500 (420) (450) - 630 (180) 450 Additional Information: 1. HIM acquired 80% of the ordinary share capital of a foreign entity, HER, on 1 January 2021 for Crowns 13 984 000. At the date of acquisition the net assets of HER had a fair value of Crowns 15 800 000. The group policy is to value non- controlling interest at fair value at the date of acquisition. The fair value of the non-controlling at the date of acquisition was Crowns 3 496 000. The fair value adjustments related to non-depreciable land. At 31 December 2021 the goodwill that arose on the acquisition of HER was impaired by 20%. Impairment is translated at the average rate and is charged to group administrative expenses. 2. The relevant exchange rates were as follows: 1 January 2021 AR/Crowns 1.61 (AR1 = Crowns 1.61) 31 December 2021 AR/Crowns 1.52 (AR1 = Crowns 1.52) Average rate 2021 AR/Crowns 1.58 (AR1 = Crowns 1.58) Required: a) Calculate the translation gain or loss for the HIM Group for the year ended 31 December 2021. (5) b) Prepare the consolidated statement of comprehensive income for the HIM Group for the yea ended 31 December 2021. (5) Question 2: (10) The income statements for HIM and HER for the year ended 31 December 2021 are shown below: Revenue Cost of sales Gross profit Distribution costs Administrative expenses Other income Profit before tax Income tax expenses Profit for the year HIM AR000 5 200 (3 200) 2000 (800) (450) 80 830 (250) 580 HER Crowns000 4 500 (3 000) 1 500 (420) (450) - 630 (180) 450 Additional Information: 1. HIM acquired 80% of the ordinary share capital of a foreign entity, HER, on 1 January 2021 for Crowns 13 984 000. At the date of acquisition the net assets of HER had a fair value of Crowns 15 800 000. The group policy is to value non- controlling interest at fair value at the date of acquisition. The fair value of the non-controlling at the date of acquisition was Crowns 3 496 000. The fair value adjustments related to non-depreciable land. At 31 December 2021 the goodwill that arose on the acquisition of HER was impaired by 20%. Impairment is translated at the average rate and is charged to group administrative expenses. 2. The relevant exchange rates were as follows: 1 January 2021 AR/Crowns 1.61 (AR1 = Crowns 1.61) 31 December 2021 AR/Crowns 1.52 (AR1 = Crowns 1.52) Average rate 2021 AR/Crowns 1.58 (AR1 = Crowns 1.58) Required: a) Calculate the translation gain or loss for the HIM Group for the year ended 31 December 2021. (5) b) Prepare the consolidated statement of comprehensive income for the HIM Group for the yea ended 31 December 2021