Pira Ltd is an Australian company that purchases inventories from Hammers plc, which is an English company. The following information is relevant to a recent acquisition of inventories for £100 000 pursuant to a contract with terms including FOB shipping point.

Required 

Prepare all of the entries of Pira Ltd that relate to the foreign currency purchase of inventories in accordance with AASB 121/IAS 21. How would your answer change if the inventories acquired had a net realisable value of £80 000 at 30 June 2023?

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Date 11 May 2023 22 Jun. 2023 Event Inventories shipped Exchange rate A$1=0.41 Inventories delivered A$1=0.42 30 Jun. 2023 End of reporting period A$1-0.43 31 Jul. 2023 Cash payment of 100 000 to Hammers plc A$1=0.39