Hardy Berhad owns 75% of the ordinary share capital of Mirza, which is situated in a Papua New Guinea. Hardy Berhad is a Malaysia based company and using Ringgit Malaysia (RM) in its trading. The currency of Papua New Guinea is Papua New Guinean kina (PGK). Hardy Berhad acquired on 1 May 2018 for PGK120 million when the retained earnings of Mirza was PGK80 million. The following are the Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position as at 30 April 2019. Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 April 2019 for Mirza Statement of Financial Position as at 30 April 2019 for Mirza PGK PGK *000 *000 Revenue 142 Non-current assets 150 Cost of sales (96) (20) (11) 102 252 Current assets Expenses Income tax expense Profit for the period Other comprehensive income Total comprehensive income Ordinary share capital of PGK1 Retained earnings Other reserves 15 52 4 19 95 4 Non-current liabilities Current liabilities 41 60 252 The following exchange rates are relevant: PGK to RM1 30 April/ 1 May 2018 30 April 2019 Average rate for year to 30 April 2019 2.5 2.1 2.0 Required: b. Prepare the Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position for Mirza after translation to the presentation currency.
Hardy Berhad owns 75% of the ordinary share capital of Mirza, which is situated in a Papua New Guinea. Hardy Berhad is a Malaysia based company and using Ringgit Malaysia (RM) in its trading. The currency of Papua New Guinea is Papua New Guinean kina (PGK). Hardy Berhad acquired on 1 May 2018 for PGK120 million when the retained earnings of Mirza was PGK80 million. The following are the Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position as at 30 April 2019. Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 April 2019 for Mirza Statement of Financial Position as at 30 April 2019 for Mirza PGK PGK *000 *000 Revenue 142 Non-current assets 150 Cost of sales (96) (20) (11) 102 252 Current assets Expenses Income tax expense Profit for the period Other comprehensive income Total comprehensive income Ordinary share capital of PGK1 Retained earnings Other reserves 15 52 4 19 95 4 Non-current liabilities Current liabilities 41 60 252 The following exchange rates are relevant: PGK to RM1 30 April/ 1 May 2018 30 April 2019 Average rate for year to 30 April 2019 2.5 2.1 2.0 Required: b. Prepare the Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position for Mirza after translation to the presentation currency.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hardy Berhad owns 75% of the ordinary share capital of Mirza, which is situated in a Papua
New Guinea. Hardy Berhad is a Malaysia based company and using Ringgit Malaysia (RM) in
its trading. The currency of Papua New Guinea is Papua New Guinean kina (PGK). Hardy
Berhad acquired on 1 May 2018 for PGK120 million when the retained earnings of Mirza was
PGK80 million. The following are the Statement of Profit or Loss and Other Comprehensive
Income and Statement of Financial Position as at 30 April 2019.
Statement of Profit or Loss and Other
Comprehensive Income for the year ended
30 April 2019 for Mirza
Statement of Financial Position as at 30
April 2019 for Mirza
PGK
PGK
000,
142
000,
Revenue
Non-current assets
150
Cost of sales
(96)
(20)
(11)
Current assets
102
252
Expenses
Income tax expense
Profit for the period
Other comprehensive income
Total comprehensive income
Ordinary share capital of PGK1
Retained earnings
Other reserves
15
52
4
95
19
4
Non-current liabilities
41
Current liabilities
60
252
The following exchange rates are relevant:
PGK to RM1
30 April/ 1 May 2018
30 April 2019
Average rate for year to 30 April 2019
2.5
2.1
2.0
Required:
b.
Prepare the Statement of Profit or Loss and Other Comprehensive Income and Statement of
Financial Position for Mirza after translation to the presentation currency.
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