Question
The net assets of a foreign operation at 30 June 2025 are constituted as assets of US$400 000 and liabilities of US$250 000. The parent
The net assets of a foreign operation at 30 June 2025 are constituted as assets of US$400 000 and liabilities of US$250 000.
The parent entity purchased the foreign subsidiary on 1 July 2022. Exchange rate information is as follows:
1 July 2022 | US$1.00 = A$1.6949 |
1 July 2024 | US$1.00 = A$1.7857 |
30 June 2025 | US$1.00 = A$1.9231 |
The foreign operation has not traded during the year ended 30 June 2025, so the net assets remained unchanged during the period.
What is the parent entity's foreign currency exposure with respect to net assets for the year ended 30 June 2025?
Select one:
a. foreign exchange gain A$20 610
b. foreign exchange loss A$6 002
c. foreign exchange gain A$342 310
d. foreign exchange gain A$197 185
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