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Blue Ltd, an Australian company, incorporated a foreign subsidiary Grey Ltd on 1 July 20X1 with capital contribution of FC $100,000. FC is a foreign

Blue Ltd, an Australian company, incorporated a foreign subsidiary Grey Ltd on 1 July 20X1 with capital contribution of FC $100,000. FC is a foreign currency used as the functional currency of Grey Ltd. The presentation currency of the Blue Group is AUD. The trial balance of Grey Ltd in FC at 30 June 20X2 is as follows:

Grey Ltd

Trial balance at 30 June 20X2

FC

FC

DR.

CR.

Total assets

400,000

Total liabilities

200,000

Issued capital

100,000

Sales

160,000

Cost of sales

20,000

Cash expenses

30,000

Depreciation

10,000

460,000

460,000

Included in the total assets is a building purchased on 1 July 20X1 with FC$800,000.

Payment of the cash expense was made on 1 October 20X1.

Sale, purchase and other expenses were incurred evenly throughout the year.

No dividends were paid or declared by Grey Ltd during the year.

Ignore income tax

Exchange rates at various dates during 20X2 are as follows:

1-Jul-20X1

FC 1.00 = AUD $2.00

1-Oct-20X1

FC 1.00 = AUD $2.10

30-Jun-20X2

FC 1.00 = AUD $2.30

Average rate of FY20X2

FC 1.00 = AUD $2.20

Required:

Calculate the translated ending balance in AUD for the Foreign Currency Translation Reserve account in the translated statement of financial position for Grey Ltd as at 30 June 20X2

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