Emu Co Ltd purchased a foreign operation based in Singapore on 1 July 2002.The following information was extracted from the foreign operation's accounts for the period ended 30 June 2004: Exchange rate information is:
What is the amount at which each item will be translated (rounded to the nearest $A)?
E) None of the given answers.

Question

Emu Co Ltd purchased a foreign operation based in Singapore on 1 July 2002.The following information was extracted from the foreign operation's accounts for the period ended 30 June 2004:  Exchange rate information is:
 What is the amount at which each item will be translated (rounded to the nearest $A)?
E) None of the given answers.

Quizplus · Accepted Answer

The items in the balance sheet will be translated at the closing rate of 1 SGD = 0.62 AUD, as they are monetary items. The average rate of 1 SGD = 0.60 AUD will be used to translate the income statement items, as they are non-monetary items. Therefore, the answer is B, as it reflects the correct translations based on the exchange rate information provided.

Emu Co Ltd Purchased a Foreign Operation Based in Singapore