Scribd
Upload
25 views4 pages

2020 Final Exam Solution

Uploaded by

joehe2625
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
25 views4 pages

2020 Final Exam Solution

Uploaded by

joehe2625
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 4

1USD=

1-Jan-19 1.50
1-Sep-19 1.56
1-Dec-19 1.57
31-Dec-19 1.60
average 2019 1.55

a) $NZ is the funactional currency


TL income statement Local currency $US Exchange rate
Sales revenue 2,000 1.55
Opening Inventory 200 1.50
Purchases 900 1.55
Ending inventory -100 1.57
Cost of Goods Sold 1,000
Gross Profit 1,000
Depreciation of equipment -500 1.50
Other expenses -200 1.55
-/+ foreign exchange gain/loss (if applicable)
Net Profit 300
Retained Earnings 1/1/19 3,700 1.50
Dividends -100 1.56
Retained Earnings 31/12/19 3,900

TL balance sheet
Contributed Capital 2,000 1.50
Retained Earnings 3,900
Foreign Currency Translation Reserve (if applicable)
Accounts Payable 2,000 1.60
Total Liabilities and Equity 7,900
Equipment (net) 3,000 1.50
Building 1,000 1.60
Inventory 100 1.57
Cash and accounts receivable 3,800 1.60
Total Assets 7,900

1/1/2019 US$ 000


Contributed Capital 2,000
Retained Earnings 3,700
Accounts Payable 1,000
Total Liabilities and Equity 6,700

Equipment (net) 3,500


Inventory 200
Cash and accounts receivable 3,000
Total Assets 6,700
Table 1 (T1)
The impact of changes in exchange
rates on the net monetary position
Net montary position 1.1.2019 2,000 1.50
Sales 2,000 1.55
Purchases - 900 1.55
Other expenses - 200 1.55
Purchase of buiding - 1,000 1.60
Dividends - 100 1.56

Net monetary posiiton 31.12.2019 1,800 1.60


FC gains

Table 2 (T2)
The impact of changes in exchange rates on net asset posiiton
Net asset posiiton 1.1. 2019 5,700 1.50
Net profit 300
Dividends - 100 1.56

Net asset position 31.12.2019 5,900 1.60


FC translation reserve
a) $NZ is the funactional currency b) $US is the functional currency
$NZ (presentation currency Exchange rate $NZ (presentation currency)
3,100 1.55 3,100
300 1.50 300
1,395 1.55 1,395
- 157 1.57 - 157
1,538 1,538
1,562 1,562
- 750 1.55 - 775
- 310 1.55 - 310
241 T1
743 477
5,550 1.50 5,550
- 156 1.56 - 156
6,137 5,871

3,000 1.50 3,000


6,137 5,871
- 569 T2
3,200 1.60 3,200
12,337 12,640
4,500 1.60 4,800
1,600 1.60 1,600
157 1.60 160
6,080 1.60 6,080
12,337 12,640
3,000
3,100
- 1,395
- 310
- 1,600
- 156
2,639
2,880
241

8,550
477
- 156
8,871
9,440
569

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy