On 1 July 2028, New York Diner Ltd, an American company based in New York, acquired all of the issued shares of Top Springs Ltd, an Australian cattle grazing company based in the Northern Territory of Australia. The trial balance for Top Springs Ltd for the last two years appears below: Y/E 30/06/29 Y/E 30/06/28

Debit Credit Debit Credit

Cash 150,000 525,000

Accounts receivable 150,000 975,000

Inventory (Opening balance) 1,050,000 900,000

Land 3,750,000 2,250,000

Buildings 6,900,000 6,150,000

Accum. Depn. - Buildings 900,000 600,000

Plant 5,400,000 4,500,000

Accum. Depn. - Plant 975,000 600,000

Patents 600,000 600,000

Accounts payable 2,400,000 2,100,000

Dividends Payable 1,500,000 1,200,000

Provisions 2,475,000 4,650,000

Loan Bank of New York 3,750,000

Share capital 5,400,000 5,400,000

Retained earnings (Opening balance) 1,500,000 1,275,000

Dividend paid 900,000 825,000

Dividend declared 1,500,000 1,200,000

Sales 12,000,000 9,750,000

Purchases 6,300,000 4,425,000

Depreciation - Buildings 300,000 225,000

Depreciation - Plant 375,000 262,500

Interest 300,000

Other expenses 2,137,500 1,762,500

Income tax expense 1,087,500 975,000

30,900,000 30,900,000 25,575,000 25,575,000

Additional information 1. Closing inventory on 30 June 2029 was $2,100,000 and was acquired during June 2029

2. The loan of $AUD 3,750,000 from Bank of New York Ltd was granted on 1 July 2028. The interest rate is 8% per annum. Interest payments are made on the last day of each half year (31 December and 30 June)

3. Land was acquired by Top Springs Ltd on 1 April 2029 for $1,500,000 4. Construction of buildings was completed and paid for on 1 October 2028 for $750,000. The buildings have a useful life of 10 years, with no residual value. Top Springs Ltd use straight-line method for all buildings.

5. New items of plant were delivered and paid for on 31 December 2028 for $900,000. The plant have a useful life of 5 years, with no residual value. Top Springs Ltd use straight-line method for all plant.

6. The interim dividend was paid on 31 December 2028

7. The dividend payable was declared on 30 June 2029

8. Sales, purchases and expenses were occurred evenly throughout the period.

9. On consolidation, the partial goodwill method is used. The exchange rates for the financial year were as follows: AUD = US$

01-Jul-2028 0.60

01-Oct-2028 0.62

31-Dec-2028 0.64

01-Apr-2029 0.67

30-Jun-2029 0.70

Average June 2029 0.69

Average for 2028-29 0.65

Required 1. Prepare the following financial statements for Top Springs Ltd in Australian Dollars for the financial year ended 30 June 2029:

A Statement of Profit or Loss A Statement of Changes in Equity (column format) A Statement of Financial Position (current / non-current format) Note: Comparative data are not required

2. Assume that the functional currency for Top Springs Ltd is the US dollar. Prepare a table in which you translate the financial data for Top Springs Ltd to the functional currency. 3. Prepare the financial statements (as above) for Top Springs Ltd using the functional currency of US dollars.

4. Provide a table in which you determine the opening and closing net monetary assets and verify the foreign currency translation adjustment