You are a trainee Chartered Accountant employed by BICA. You have been seconded to work for an international company called Afiq Diamond Ltd to assist it in finalising its financial accounts for the year ending $31$ December $2023.$ Afiq Diamond operates several jewellery shops which it designs and sell a wide range of jeweller products. The management has asked you to address the following case. Historically Afiq Diamond purchased jewellery from a single mining company in Botswana. However, in December $2022,$ Afiq Diamond began to sell jewellery which had been purchased from a different mine, based in Europe. The first shipment of European jewellery was ordered on $5$ January $2023,$ arrived on $10$ February $2023,$ and the purchase invoice, for $160,000,$ was correctly translated and processed. No adjustments have subsequently been made to this figure. At the year end the invoice was unpaid and all the jewellery were unsold. The jewellery has been included in inventories in the draft financial statements using the spot rate at $31$ December $2023.$

The spot exchange rates were as follows:

$5$ January $20231$: P$0\mathrm{.}85$

$10$ February $20231$: P$0\mathrm{.}90$

$31$ December $20231$: P$0\mathrm{.}95$

Required: Explain the above issue's IFRS reporting treatment in Afiq Diamond's financial statements for the year ended $31$ December $2023.$ Prepare all applicable calculations and journal entries to reflect the required changes.