One of Company Y’s business units transacts in the FC. However, the functional currency of Company Y is the dollar. The following transactions are denominated in the FC and should be translated to the dollar in accordance with IAS 21 paragraphs 20–34. Exchange rates ($ to FC 1) at the date of the transaction are shown next to the item.

Required
1. What are the reported amounts of the following in dollars as at 31 December 20x5?

(a) Fixed assets, net book value

(b) Depreciation expense

(c) Profit/(loss) on sale of fixed assets

(d) Cost of sales

(e) FVOCI security

(f) Fair value adjustment (equity) relating to FVOCI (g) Trading securities (h) Fair value change in profit and loss relating to trading securities (i) Prepaid insurance (j) Insurance expense for the year 2. Compute the exchange gain or loss from the movements in exposed FC monetary assets/(liabilities) for the year ended 31 December 20x5.

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Transactions that were evenly spread throughout 20x5 Sales.. Purchases. Operating expenses. Interest expense. Tax expense. Details of the FVOCI equity security and the trading security are shown below. 31 May 20x4: Purchase of FVOCI equity security Purchase price of FVOCI security (FC).. Fair value of FVOCI security at 31 December 20x4 (FC). Fair value of FVOCI security at 31 December 20x5 (FC). Balance in fair value adjustment (equity) as at 31 December 20x4. FC FC 2,000,000 1,500,000 260,000 900,000 880,000 1,000,000 (20,000) 50,000 20,000 Rate 1.72 Changes in fair value of the FVOCI are to be taken directly to equity as required under IFRS 9. Exchange gains or losses on the FVOCI are to be accounted in accordance with IAS 21 paragraph 30.