Changi Ltd is an international company resident in Singapore. It acquired the issued shares of an Australian company, Ipswich Ltd, on 1 July 2021 for A$260,000.

At 30 June 2022, the following information was available about the two companies:

ChangiLtd S$ IpswichLtd A$

Share capital 280,000 175,000

Retained earnings as at 1/7/21 165,000 85,000

Provisions 22,500 15,000

Payables 7,000 20,000

Sales 310,000 155,000

Dividend revenue 3,200 0

Accumulated depreciation - plant 105,000 80,000

892,700 530,000

Cash 46,050 15,000

Accounts receivable 72,650 57,500

Inventory 55,000 40,000

Shares in Ipswich Ltd 168,000 0

Buildings (net) 42,000 110,000

Plant 210,000 200,000

Cost of sales 195,000 60,000

Depreciation - plant 42,500 20 000

Tax expense 11,500 7,500

Other expenses 25,000 5,000

Dividend paid 10,000 5,000

Dividend provided 15,000 10,000

892,700 530,000

Additional information

1. Sales, purchases and other expenses were incurred evenly throughout the 2021-22 period. The dividend was paid by Ipswich Ltd on 1 January 2022, while the dividend was declared on 30 June 2021.

2. The rates of exchange between the Australian dollar and the Singapore dollar were (expressed as A$1 = S$0.6):

1 July 2021 0.60

1 December 2021 0.64

1 January 2022 0.68

30 June 2022 0.70

Average for the 2021-22 period 0.65

3.The functional currency of Ipswich Ltd is the Australian dollar.

Required:Translate the financial statements of Ipswich Ltd into Singapore dollars for inclusion in the consolidated financial statements of Changi Ltd.(10 marks)