Translation into functional currency  LO4, 5 Maylay Ltd, a company incorporated in Singapore, acquired all the issued shares of Victoria Ltd, a Hong Kong company, on 1 July 2019. The trial balance of Victoria Ltd at 30 June 2020 was: HK$ Dr HK$ Cr Share capital 800 000 Retained earnings (1/7/19) 240 000 General reserve 100 000 Payables 160 000 Deferred tax liability 120 000 Current tax liability 20 000 Provisions 80 000 Sales 610 000 Proceeds on sale of land 250 000 Accumulated depreciation — plant 340 000 Plant 920 000 Land 400 000 Cash 240 000 HK$ Dr HK$ Cr Accounts receivable 300 000 Inventories at 1 July 2019 60 000 Purchases 260 000 Depreciation — plant 156 000 Carrying amount of land sold 200 000 Income tax expense 50 000 Other expenses 134 000 2 720 000 2 720 000 Additional information • Exchange rates based on equivalence to HK$1 were as follows. S$ 1 July 2019 0.20 8 October 2019 0.25 1 December 2019 0.28 1 January 2020 0.30 2 April 2020 0.27 30 June 2020 0.22 Average for last quarter 2019–20 0.24 Average for 2019–20 0.26 • Inventories were acquired evenly throughout the year. The closing inventories of HK$60 000 were acquired during the last quarter of the year. • Sales and other expenses occurred evenly throughout the year. • The Hong Kong tax rate is 20%. • The land on hand at the beginning of the year was sold on 8 October 2019. The land on hand at the end of the year was acquired on 1 December 2019. • Movements in plant over the year ended 30 June 2020 were as follows. HK$ Plant at 1 July 2019 600 000 Acquisitions — 8 October 2019 200 000 — 2 April 2020 120 000 Plant at 30 June 2020 920 000 Depreciation on plant is measured at 20% p.a. on cost. Where assets are acquired during a month, a full month’s depreciation is charged. • The functional currency of the Victoria Ltd is the Singaporean dollar. Required 1. Prepare the financial statements of Victoria Ltd in Singaporean dollars at 30 June 2020. 2. Verify the foreign currency translation adjustment.