QUESTION 2: FOREIGN CURRENCY TRANSACTIONS (20 Marks) (a) Hyacinth Limited acquired inventory from an overseas supplier on credit, payable in Chinese Yuan. In the absence of a hedge arrangement, if the Chinese Yuan strengthens against the New Zealand dollar while the payable is outstanding, how should this movement be treated for accounting purposes in the books of Hyacinth Limited? New Zealand dollar is the functional currency of Hyacinth Limited. (2 marks) Type your answer here