Translation into presentation currency   LO5 On 1 July 2018 Emu Ltd, an Australian company, acquired shares in Cantonese Ltd, a company based in Hong Kong. At this date, the equity of Cantonese Ltd was as follows. HK$ Share capital 200 000 General reserve 100 000 Retained earnings 300 000 At 30 June 2019 and 2020, the retained earnings balances of Cantonese Ltd were HK$400 000 and HK$450 000 respectively. All transactions occurred evenly throughout these years. The internal financial statements of the two companies at 30 June 2021 were as follows. Statements of profit or loss and other comprehensive income Emu Ltd A$ Cantonese Ltd HK$ Sales 700 000 595 000 Cost of sales 300 000 400 000 400 000 195 000 Expenses 210 200 100 000 189 800 95 000 Dividend revenue 12 000 — Profit before income tax 201 800 95 000 Tax expense 51 800 20 000 Profit 150 000 75 000 Retained earnings as at 1/7/20 750 000 450 000 900 000 525 000 Dividend paid 100 000 25 000 Retained earnings as at 30/6/21 800 000 500 000 Statements of financial position Emu Ltd A$ Cantonese Ltd HK$ Current assets 311 520 250 000 Shares in Cantonese Ltd 288 480 — Property, plant and equipment (net) 700 000 500 000 Patents and trademarks 100 000 150 000 Total assets 1 400 000 900 000 Liabilities 100 000 100 000 Net assets 1 300 000 800 000 Equity Share capital 500 000 200 000 General reserve — 100 000 Retained earnings 800 000 500 000 Total equity 1 300 000 800 000 Additional information • The dividend paid by Cantonese Ltd was paid (and recognised as dividend revenue of A$12 000 by Emu Ltd) on 1 May 2021. • Some relevant exchange rates are as follows. 1 July 2018 HK$1 = A$0.80 Average for 2018–19 0.82 1 July 2019 0.85 Average for 2019–20 0.88 1 July 2020 0.90 Average for 2020–21 0.85 1 May 2021 0.80 30 June 2021 0.78 Required Translate the financial statements of Cantonese Ltd as at 30 June 2021 into the presentation currency of Australian dollars, assuming that the functional currency is the Hong Kong dollar.