Part B: Translation of Financial Statements into Functional Currency (10 Marks) Question No. 04 The financial statement of Lantau Limited for year 2018 is given below in Hong Kong Dollars. You are required to carry out the translation of financial statements into functional currency and prepare the financial statement into Singaporean dollars HKS Rate SS 0.26 Sales 610 000 Cost of sales 0.20 Opening inventory 60 000 Purchases 260 000 0.26 320 000 60 000 0.24 Closing inventory 260 000 Gross profit 350 000 250 000 0.25 Proceeds of land sold 0.20 Carrying amount of land sold 200 000 50 000 Gain on sale 400 000 Expenses: Depreciation 120 000 0.20 30 000 0.25 6 000 0.27 Other 0.26 134 000 290 000 110 000 FC translation gain/(loss) Profit before income tax Income tax expense 50 000 0.26 Profit 60 000 Retained earnings (op) 240 000 0.20 Retained earnings (cl) 300 000 0.20 Share capital 800 000 0.20 General reserve 100 000 $1.200.000 Plant 600 000 0.20 200 000 0.25 120 000 0.27 0.20 Accumulated depreciation (184 000) 0.20 (120 000) 0.25 (30 000) (6 000) 0.27 Land 400 000 0.28 60 000 0.24 Inventory Cash 240 000 0.22 0.22 300 000 Accounts receivable Total assets 1 580 000 0.22 Payables 160 000 0.22 Deferred tax liability 120 000 0.22 20 000 Current tax liability 80 000 0.22 Provisions 0.22 380 000 Total liabilities $1 200 000 Net assets