Question
oru Co Ltd purchased a foreign operation based in Singapore on 1 July 2015. The following information was extracted from the foreign operation's accounts for
oru Co Ltd purchased a foreign operation based in Singapore on 1 July 2015. The following information was extracted from the foreign operation's accounts for the period ended 30 June 2017:
| $S | |
| Equipment (purchased 1 July 2015, revalued 1 June 2017) | 650,000 |
| Debentures (issued 1 June 2017) | 900,000 |
| Inventory on hand (purchased April to June 2017) | 68,000 |
| Depreciation expenseequipment | 54,000 |
| Share capital at acquisition of foreign subsidiary | 4,000,000 |
| Sales revenue (earned evenly over the period) | 850,000 |
Exchange rate information is:
| 1 July 2015 | $S1.00 = NZ$ 1.0520 |
| Average for year ended 30 June 2017 | $S1.00 = NZ$ 1.0700 |
| 1 June 2017 | $S1.00 = NZ$ 1.0735 |
| Quarter April-June 2017 | $S1.00 = NZ$ 1.0600 |
| 30 June 2017 | $S1.00 = NZ$ 1.0690 |
The $NZ is the functional currency of the Singaporean operation. What is the amount at which each item will be translated (rounded to the nearest NZ$)?
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Accountants Truth Knowledge And Ethics In The Financial World
Authors: Matthew Gill
1st Edition
0199547149, 9780199547142
