Translation into presentation currency   LO5 Lion Ltd is an international company resident in Singapore. It acquired the issued shares of an Australian company, Koala Ltd, on 1 July 2019 for A$700 000. At 30 June 2020, the following information was available about the two companies. Lion Ltd S$ Koala Ltd A$ Share capital 560 000 350 000 Retained earnings as at 1/7/19 330 000 170 000 Provisions 34 000 30 000 Payables 14 000 40 000 Sales 620 000 310 000 Dividend revenue 6 400 0 Accumulated depreciation — plant 210 000 160 000 1 785 400 1 060 000 Lion Ltd S$ Koala Ltd A$ Cash 92 100 30 000 Accounts receivable 145 300 115 000 Inventories 110 000 80 000 Shares in Koala Ltd 336 000 0 Buildings (net) 84 000 220 000 Plant 420 000 400 000 Cost of sales 390 000 120 000 Depreciation — plant 85 000 40 000 Tax expense 23 000 15 000 Other expenses 50 000 10 000 Dividend paid 20 000 10 000 Dividend declared 30 000 20 000 1 785 400 1 060 000 Additional information • Sales, purchases and other expenses were incurred evenly throughout the period ended 30 June 2020. The dividend paid by Koala Ltd was received by Lion Ltd on 1 January 2020, while the dividend declared by Koala Ltd was announced on 30 June 2020. • Koala Ltd acquired A$100 000 additional new plant on 1 January 2020. Of the depreciation charged in the period ended 30 June 2020, A$8000 related to the new plant. • The rates of exchange between the Australian dollar and the Singapore dollar were (expressed as A$1 = S$): 1 July 2019 0.60 1 December 2019 0.64 1 January 2020 0.68 30 June 2020 0.70 Average for January–June 2020 0.72 Average for 2019–20 0.65 • The functional currency of Koala Ltd is the Australian dollar. Required 1. Translate the financial statements of Koala Ltd into Singapore dollars for inclusion in the consolidated financial statements of Lion Ltd. 2. Verify the foreign currency translation adjustment.