QUESTION 1 On 1 July 2018. Kanga Ltd, an Australian company formed a New Zealand trading company, Possum Ltd. Kanga Ltd holds 100% of the shares in Possum Ltd. During the 2019 financial year, the New Zealand currency ('$NZ") fluctuated significantly because of political instability Excerpts from Possum Ltd's financial statements for the financial year ended 30 June 2019 are as follows: Possum Ltd Financial Statements Year Ended 30 June 2019 SNZ SA Total Assets 500.000 Total abilities 300.000 Net Assets 200.000 Share capital 100.000 Retained profit 100.000 90.000 Total Shareholders' Equity 200.000 The accountant for Possum Ltd has translated Possum's income statement into Australian dollars and determined that the SA balance of retained profits at 30 June 2019 is $90.000 as shown in the table above. No dividends were paid or proposed by Possum Ltd during the 2019 financial year. Exchange rates at various dates during the 2019 financial year are as follows: July 2010 541.00 - 5N20.80 31 December 2018 SA1.00 - 20.00 so june 2019 SA1.00 - $21.25 Average rate 2016 Financial Year SA1.00 - SN21.00 Required: Translate Possum Ltd's net assets beginning 30 June 2019 into Australian dollars in accordance with AS$ 121 The Effects of Changes in Foreign Exchange Rates: QUESTION 2 On 1 July 2018. Kanga Ltd. an Australian company, formed a New Zealand trading company, Possum Ltd, Kanga Ltd holds 100% of the shares in Possum Ltd. During the 2019 financial year, the New Zealand currency ("SNZO fluctuated significantly because of political instability Excerpts from Possum Ltd's financial statements for the financial year ended 30 June 2019 are as follows: Possum Ltd Financial Statements Year Ended 30 June 2019 SNZ SA Total Assets 500.000 Total Liabilities 300,000 Net Assets 200.000 Share capital 100,000 Retained profit 100,000 90,000 Total Shareholders' Equity 200,000 The accountant for Possum Ltd has translated Possum's income statement into Australian dollars and determined that the SA balance of retained profits at 30 June 2019 is 500,000 as shown in the table above. No dividends were paid or proposed by Possum Led during the 2019 financial year. Exchange rates at various dates during the 2019 financial year are as follows: July 2018 SA1.00 - SN20.80 31 December 2018 SA1.00 - SN20.90 30 June 2019 SA1.00 - SN21.25 Hverage rate 2019 Financial Year SA1.00 - $N21.00 Required: Translate Possum Ltd's share capital beginning 30 June 2019 into Australian dollars in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates'. QUESTION 3 On 1 July 2019, Koala Ltd, an Australian company formed a New Zealand trading company, Kiwi Ltd. Koala Ltd holds 100% of the shares in Kiwi Ltd. During the 2020 financial year. the New Zealand currency ("SNZ") fluctuated significantly because of political instability Excerpts from Kiwi Ltd's financial statements for the financial year ended 30 June 2020 are as follows: Kiwi Ltd Financial Statements Year Ended 30 June 2020 SNZ SA Total Assets 800.000 Total Labilities 300.000 Net Assets 500.000 Share capital 400.000 Retained profit 100,000 95.000 Total Shareholders' Equity 500.000 The accountant for Kiwi Ltd has translated Kiwis income statement into Australian dollars and determined that the SA balance of retained profiles at 30 June 2020 is 505.000 as shown in the table above. No dividends were paid or proposed by Kiwi Ltd during the 2019 financial year. Exchange rates at various dates during the 2020 financial year are as follows: July 2019 SA1.00 - $20.80 31 December 2010 3A1.00 - $20.90 30 June 2020 SA1.00 - $NZ1.20 Average rate 2020 Financial Year SA1.00 SN21.00 Required: What is the balance of the Foreign Currency Translation Reserve? Is this again or a loss? Show all of your workings TTTT Paragraph Arial 3 (12pt) TE E-T- Qi 3 QUESTION 1 On 1 July 2018. Kanga Ltd, an Australian company formed a New Zealand trading company, Possum Ltd. Kanga Ltd holds 100% of the shares in Possum Ltd. During the 2019 financial year, the New Zealand currency ('$NZ") fluctuated significantly because of political instability Excerpts from Possum Ltd's financial statements for the financial year ended 30 June 2019 are as follows: Possum Ltd Financial Statements Year Ended 30 June 2019 SNZ SA Total Assets 500.000 Total abilities 300.000 Net Assets 200.000 Share capital 100.000 Retained profit 100.000 90.000 Total Shareholders' Equity 200.000 The accountant for Possum Ltd has translated Possum's income statement into Australian dollars and determined that the SA balance of retained profits at 30 June 2019 is $90.000 as shown in the table above. No dividends were paid or proposed by Possum Ltd during the 2019 financial year. Exchange rates at various dates during the 2019 financial year are as follows: July 2010 541.00 - 5N20.80 31 December 2018 SA1.00 - 20.00 so june 2019 SA1.00 - $21.25 Average rate 2016 Financial Year SA1.00 - SN21.00 Required: Translate Possum Ltd's net assets beginning 30 June 2019 into Australian dollars in accordance with AS$ 121 The Effects of Changes in Foreign Exchange Rates: QUESTION 2 On 1 July 2018. Kanga Ltd. an Australian company, formed a New Zealand trading company, Possum Ltd, Kanga Ltd holds 100% of the shares in Possum Ltd. During the 2019 financial year, the New Zealand currency ("SNZO fluctuated significantly because of political instability Excerpts from Possum Ltd's financial statements for the financial year ended 30 June 2019 are as follows: Possum Ltd Financial Statements Year Ended 30 June 2019 SNZ SA Total Assets 500.000 Total Liabilities 300,000 Net Assets 200.000 Share capital 100,000 Retained profit 100,000 90,000 Total Shareholders' Equity 200,000 The accountant for Possum Ltd has translated Possum's income statement into Australian dollars and determined that the SA balance of retained profits at 30 June 2019 is 500,000 as shown in the table above. No dividends were paid or proposed by Possum Led during the 2019 financial year. Exchange rates at various dates during the 2019 financial year are as follows: July 2018 SA1.00 - SN20.80 31 December 2018 SA1.00 - SN20.90 30 June 2019 SA1.00 - SN21.25 Hverage rate 2019 Financial Year SA1.00 - $N21.00 Required: Translate Possum Ltd's share capital beginning 30 June 2019 into Australian dollars in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates'. QUESTION 3 On 1 July 2019, Koala Ltd, an Australian company formed a New Zealand trading company, Kiwi Ltd. Koala Ltd holds 100% of the shares in Kiwi Ltd. During the 2020 financial year. the New Zealand currency ("SNZ") fluctuated significantly because of political instability Excerpts from Kiwi Ltd's financial statements for the financial year ended 30 June 2020 are as follows: Kiwi Ltd Financial Statements Year Ended 30 June 2020 SNZ SA Total Assets 800.000 Total Labilities 300.000 Net Assets 500.000 Share capital 400.000 Retained profit 100,000 95.000 Total Shareholders' Equity 500.000 The accountant for Kiwi Ltd has translated Kiwis income statement into Australian dollars and determined that the SA balance of retained profiles at 30 June 2020 is 505.000 as shown in the table above. No dividends were paid or proposed by Kiwi Ltd during the 2019 financial year. Exchange rates at various dates during the 2020 financial year are as follows: July 2019 SA1.00 - $20.80 31 December 2010 3A1.00 - $20.90 30 June 2020 SA1.00 - $NZ1.20 Average rate 2020 Financial Year SA1.00 SN21.00 Required: What is the balance of the Foreign Currency Translation Reserve? Is this again or a loss? Show all of your workings TTTT Paragraph Arial 3 (12pt) TE E-T- Qi 3