On 1 January 2023. Toby Ltd. an Australian company that has A$ as its functional currency. enters into a forward exchange contract to sell 300
On 1 January 2023. Toby Ltd. an Australian company that has A$ as its functional currency. enters into a forward exchange contract to sell 300 000 on 31 August 2023. The forward contract is designated as a hedge for a sales transaction of 300 000 that Toby Ltd expects to have with a German customer on 31 August 2023. The sales transaction is highly probable based on past experience. Assume a discount rate of0% for fair value calculations. Relevant exchange rates are as follows. Forward rate (for Spot rate 31002023] 1 January 2023 1=A$127 1=A$132 30 June 2023 1=A$130 1=A$135 31 August 2023 1=A$136 1=A$136 Required Prepare the necessary entries for Toby Ltd up until and including 31 August 2023 in accordance with AASB lZlAS 21. Assume the sale transaction with the German customer takes place as anticipated on 31 August 2023
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