Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1 July 2019. Aus Ltd acquired all the issued shares of Amer Ltd. Aus Ltd is an Australian company whose functional and presentation currency

image text in transcribed
On 1 July 2019. Aus Ltd acquired all the issued shares of Amer Ltd. Aus Ltd is an Australian company whose functional and presentation currency is Australian dollars. Amer Ltd is an overseas subsidiary which operates in the United States and whose functional currency is the US dollars. The net assets of Amer Ltd as at 1 July 2019 were: SUS Retained earnings General reserve Share capital 169 000 82000 387 000 Relevant exchange rates for the year were: 1 July, 2019 $US1 - 1,65 SAUD 30 June, 2020 $US1 - 1.00 SAUD Average for the period 1 July, 2019 - 30 June, SUS1 - 1.89 $AUD 2020 Amer Ltd recorded an after tax profit of US$89 000 and did not pay any dividend for the year ended 30 June 2020. Amer Ltd's revenues were earned and expenses were incurred evenly over the financial year. Required: > What is the amount of retained earnings translated in Australian dollars at 30 June 2020? Enter the value in the box below. The number should be entered without any dollar sign ($). punctuation, or space. For example, if you think the answer is $1,000,000, you must enter 1000000 into the box. Incorrectly formatted answers will not be awarded any marks

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

Step: 3

blur-text-image

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

Mis And Edp Auditing For Accountants And Auditors

Authors: Srv

1st Edition

9993730351, 978-9993730354

More Books

Students also viewed these Accounting questions

Question

a. Describe the encounter. What made it intercultural?

Answered: 1 week ago