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On I July 2013, Bill Ltd borrowed US$1 million for a period of ten years from one of its American subsidiaries when the exchange rate
On I July 2013, Bill Ltd borrowed US$1 million for a period of ten years from one of its American subsidiaries when the exchange rate was A$1 = US$1.13.
Assume the following exchange rates;
| 30 June 2014 | A$1 = US$1.05 |
| 30 June 2015` | A$1 = US$1.00 |
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Required
Prepare the general journal entries to record the above events, following the requirements of AASB121, The Effects of Changes in Foreign Exchange Rates. State any assumptions you make.
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