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You are CFO of Koala Ltd, an Australian entity. The company's financial year ends on 30 June. The company has agreed to purchase 10 new

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You are CFO of Koala Ltd, an Australian entity. The company's financial year ends on 30 June. The company has agreed to purchase 10 new handmade sports cars (as inventory) from a British supplier. The official order for the vehicle is placed on 31 January 2020. The contract price is 350 000 and delivery takes place on 30 May 2020, as agreed, at which time the title of the goods passes to Koala Ltd. Payment in respect of these vehicles is due on 31 August 2020. In anticipation of the contract on 31 January 2020, the company enters into a foreign currency contract to receive 350 000 on 31 August 2020 at a forward rate of A$1.00-0.46. Assume that the hedge satisfied the hedge accounting requirements of AASB 9, it was 100% effective and that Koala Ltd had designated the hedging arrangement as a cash flow hedge. The following exchange rates are applicable: Spot rate Forward rate for delivery of 350 000 on 31 August 2020 31 January 2020 A$1.00 = 0.49 A$1.00 = 0.46 30 May 2020 A$1.00 = 0.47 A$1.00 = 0.44 30 June 2020 A$1.00 = 0.43 A$1.00 = 0.40 31 August 2020 A$1.00 = 0.40 A$1.00 = 0.40 REQUIRED: Prepare general journal entries to record these transactions in Koala Ltd's books in accordance with the requirements of AASB 9. Show all calculations on measuring fair values and changes in fair values of the hedging instrument and the hedged item at various dates. Provide any necessary explanation to support your answer. No narration is required. Round answers to the nearest Australian dollar You are CFO of Koala Ltd, an Australian entity. The company's financial year ends on 30 June. The company has agreed to purchase 10 new handmade sports cars (as inventory) from a British supplier. The official order for the vehicle is placed on 31 January 2020. The contract price is 350 000 and delivery takes place on 30 May 2020, as agreed, at which time the title of the goods passes to Koala Ltd. Payment in respect of these vehicles is due on 31 August 2020. In anticipation of the contract on 31 January 2020, the company enters into a foreign currency contract to receive 350 000 on 31 August 2020 at a forward rate of A$1.00-0.46. Assume that the hedge satisfied the hedge accounting requirements of AASB 9, it was 100% effective and that Koala Ltd had designated the hedging arrangement as a cash flow hedge. The following exchange rates are applicable: Spot rate Forward rate for delivery of 350 000 on 31 August 2020 31 January 2020 A$1.00 = 0.49 A$1.00 = 0.46 30 May 2020 A$1.00 = 0.47 A$1.00 = 0.44 30 June 2020 A$1.00 = 0.43 A$1.00 = 0.40 31 August 2020 A$1.00 = 0.40 A$1.00 = 0.40 REQUIRED: Prepare general journal entries to record these transactions in Koala Ltd's books in accordance with the requirements of AASB 9. Show all calculations on measuring fair values and changes in fair values of the hedging instrument and the hedged item at various dates. Provide any necessary explanation to support your answer. No narration is required. Round answers to the nearest Australian dollar

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