Translation of Foreign Currency Financial Statements Attempt the problem below as a practice In preparation for the final exam. The Condensed Statement of Financial Position and Income Statements of Larry Co. and its Overseas (foreign) Subsidiary Shack Co. are shown below: STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2014 Larry $$ $$ Shack Assets Non-current Assets Equipment cost: 880 500 Less: accumulated depreciation (350) 459 (200) 200 Investment in Shack 100 shares at 1 each 200 0 650 300 Current Assets Inventories 800 500 Accounts Receivable 1000 180 350 850 2450 1150 Equity and Liabilities Equity Equity Share $1/1 1000 500 Reserves 850 350 1850 850 Long term liabilities 200 200 Current liabilities 400 100 2450 1150 Condensed Income Statements of Larry Co. and its overseas subsidiary Shack Co. for the year ended December 31, 2014 Profit before tax 800 Tax (450) Profit after tax, retained 880 ACCT3041 Advanced Financial Accounting UNIT 7 105 LEARNING ACTIVITY 7.2 Translation of Foreign Currency Financial Statements The following additional information is given: (a) Depreciation is charged at a rate of 5% per annum (b) There were no loan repayments or movements in non-current assets during the year ended December 31, 2014. The opening inventory of Shack Co. was 100. Assume that inventory turnover times are very short. (c) Larry Co. has had its interest in Shack Co. since the incorporation of the company. The following exchange rates are applicable: 6 =$1 when Shack Co. was incorporated 4 =$1 when Shack Co. acquired its non-current assets 3.5 =$1 on December 31, 2013 2.5 =$1 average rate of exchange for the year ended December 31, 2014 1 =$1 on December 31, 2014 Required: Prepare the summarized consolidated financial statements of the Larry Co group for the year ended December 31, 2014.

ranslation of Foreign Currency Financial Statements Attempt the problem below as a practice In preparation for the final exam. The Condensed Statement of Financial Position and Income Statements of Larry Co. and its Overseas (foreign) Subsidiary Shack Co. are shown below: STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2014 Larry $$ $$ Shack fE Assets Non-current Assets 880 500 uipment cost: Less: accumulated depreciation (350) Investment in Shack 100 shares 459 (200) 200 200 at l each 650 300 Current Assets Inventories Accounts Receivable 800 1000 500 180 350 2450 850 1150 Eauity and Liabilities uit Equity Share $1/E1 Reserves 1000 850 500 350 1850 850 200 100 1150 Long term liabilities Current liabilities 200 2450 Condensed Income Statements of Larry Co. and its overseas subsidiary Shack Co. for the year ended December 31, 2014 ranslation of Foreign Currency Financial Statements Attempt the problem below as a practice In preparation for the final exam. The Condensed Statement of Financial Position and Income Statements of Larry Co. and its Overseas (foreign) Subsidiary Shack Co. are shown below: STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2014 Larry $$ $$ Shack fE Assets Non-current Assets 880 500 uipment cost: Less: accumulated depreciation (350) Investment in Shack 100 shares 459 (200) 200 200 at l each 650 300 Current Assets Inventories Accounts Receivable 800 1000 500 180 350 2450 850 1150 Eauity and Liabilities uit Equity Share $1/E1 Reserves 1000 850 500 350 1850 850 200 100 1150 Long term liabilities Current liabilities 200 2450 Condensed Income Statements of Larry Co. and its overseas subsidiary Shack Co. for the year ended December 31, 2014