Translation into functional and presentation currency  LO4, 5 Sydney Ltd is a manufacturer of sheepskin products in Australia. It is a wholly owned subsidiary of a Hong Kong company, Wan Chai Ltd. The following assets are held by Sydney Ltd at 30 June 2019. Plant: Cost A$ Useful life (years) Acquisition date Exchange rate on acquisition date (A$1 = HK$) Tanner 40 000 5 10/8/15 5.4 Benches 20 000 8 8/3/17 5.8 Presses 70 000 7 6/10/18 6.2 Plant is depreciated on a straight-line basis, with zero residual values. All assets acquired in the first half of a month are allocated a full month’s depreciation. Inventories: • At 1 July 2018, the inventories on hand of A$25 000 was acquired during the last month of the period ended 30 June 2018. • Inventories acquired during the period ended 30 June 2019 was acquired evenly throughout the period. Total purchases of A$420 000 were acquired during that period. • The inventories of A$30 000 on hand at 30 June 2019 was acquired during June 2019. Relevant exchange rates (quoted as A$1 = HK$) are as follows. Average for June 2018 7.2 1 July 2018 7.0 Average for 2018–19 7.5 Average for June 2019 7.7 Average for October 2018 – June 2019 7.6 30 June 2019 7.8 Required 1. Assuming the functional currency for Sydney Ltd is the A$, calculate:

(a) the balances for the plant items and inventories in HK$ at 30 June 2019

(b) the depreciation and cost of sales amounts in HK$ in the statement of profit or loss and other comprehensive income for the period ended 30 June 2019. 2. Assuming the functional currency is the HK$ and the presentation currency is A$, calculate:

(a) the balances for the plant items and inventories in HK$ at 30 June 2019

(b) the depreciation and cost of sales amounts in HK$ in the statement of profit or loss and other comprehensive income for the period ended 30 June 2019.