Co A is a foreign subsidiary of Parent Co. For purposes of consolidation, the foreign currency financial statements of Company A have to be translated from its functional currency (the USD) to the presentation currency (the SGD). Complete the table below by inserting the appropriate rates and completing the SGD column.

Other information

(1) Loan due to Parent Company has no fixed terms of repayment and is deemed an extension of the parent’s net investment in Co A. The exchange gain should be reclassified to FCTR in the group financial statements.

(7) Co A sold inventory to Parent as follows:

(8) Parent Co sold inventory to Co A as follows:

(9) Percentage ownership by NCI 20%
Percentage ownership by Parent 80%

Required

(a) Translate the financial statements into the presentation currency.

(b) Reconcile the ending balance of the foreign currency translation reserve with the movements in net exposed items of Co A for the year ended 31 December 20x5.

(c) Prepare the consolidation adjustments for Co A for the year ended 31 December 20x5 in Singapore dollars.

(d) Perform an analytical check of NCI in Singapore dollars as at 31 December 20x5.

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Sales. Less. Opening inventory Purchases. Less closing inventory. Cost of sales.. Gross profit.. Operating expenses. Depreciation... Exchange gain on intercompany loan. Profit before tax. Tax expense.. Profit after tax. Dividends declared Profit retained. Retained earnings, 1 Jan 20x5. Retained earnings, 31 Dec 20x5. Income Statement for the year ended 31 Dec 20x5 USD 3,200,000 300,000 2,000,000 (400,000) (1,900,000) 1,300,000 (320,000) (100,000) 20,000 900,000 (180,000) 720,000 (80,000) 640,000 400,000 1,040,000 Rate SGD