Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

INR Reliance Industries Limited is an Indian Multinational Conglomerate Company Headquartered in Mumbai, India with different branches all over the world. The Chief Executive Officer

image text in transcribed
INR Reliance Industries Limited is an Indian Multinational Conglomerate Company Headquartered in Mumbai, India with different branches all over the world. The Chief Executive Officer (CEO) of the company is very interested to know the impact of COVID 19 during the Financial Year (FY) ending 31" March 2020 in certain branches located in United States (Branch - 1); London (Branch - 2) and Japan (Branch - 3). The detail Foreign Exchange rates to translate the Balance Sheet is given below for your reference Method Branch - 1 Branch - 2 Branch - 3 Current Exchange Rate USD 76.6516/INR GBP 0.01051/INR JPY 0.7131/INR Average Exchange Rate USD 76.5444/INR GBP 0.01123/INR INR 1.4351/JPY Historical Exchange Rate USD 75.8276/INR INR 93.3671/GBP IND 1.4085/JPY The Balance Sheets of parent Company and its affiliate are given as on 31" December 2019. Assets Reliance Branch - 1 Branch - 2 Branch - 3 USD GBP JPY Cash 1,245,000 950,000 38,000 1,158,200 Unexpired Expenses 23,000 3,200 15,570 Notes Receivable 33.000 21,000 15,000 15,500 Inventories 77,000 525,000 225,000 344,000 Building 1,510,000 230,000 412.000 665,000 Furniture and Fitting 670,000 83,550 52,000 434,100 Patent 38,000 22,350 Trademark 12,000 13,500 Goodwill 673,500 123,000 8,500 34,250 Total 4,269,500 1,932,550 765,700 2,702,470 Liabilities & Common Equity Reliance Branch - 1 Branch - 2 Branch - 3 INR Accounts Payable 867,000 350,000 223,000 1,223,000 Postage Outstanding 86,000 11,500 11,500 Long Term Bonds 1,212.000 198,650 164,000 564,000 10 Year Loan from Banks 184,500 250,040 Short Term Debts 715,000 484,800 120,050 120,050 Common Equity 1,291,000 563,060 247,150 783,920 Total 4,269,500 1,932,550 765,700 2,702,470 Requirement: a) You are required to use Current/Non-Current Method to translate the affiliates Balance Sheet into reporting currency. (6 - Marks) b) Consolidate the Balance Sheet in the books of Reliance Industries Limited for the year ending 31" March 2020. (2 - Marks) c) Calculate Net Exposed Assets by using Current/Non-Current Method? (2 - Marks) USD GBP JPY

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Digital Transformation Of Auditing And The Evolution Of The Internal Audit

Authors: Nabyla Daidj

1st Edition

1032103914, 978-1032103914

More Books

Students also viewed these Accounting questions