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On 1 January 2019, Flower Bhd. acquired 75% of the issued share capital of Selasih Bhd where the currency is in CU. Selasih Bhd.s’ functional currency is that of parent which is RM. Selasih Bhd.'s 2019 and 2020 draft statement of financial position prepared in its functional currency (CU) are as follows: Statement of financial position at 31 December 2020 CU 2019 CU Property, plant and equipment Inventory Trade and other receivables 840 870 150 250 200 300 Cash 494 1,784 200 1,520 Trade and other payables Таx рayable 160 100 99 259 126 226 Total liabilities Share capital Retained earnings 1,000 1,000 294 1,294 1,520 525 1,525 1,784 Total liabilities and equity

On 1 January 2019, Flower Bhd. acquired 75% of the issued share capital of Selasih Bhd where the currency is in CU. Selasih Bhd.s’ functional currency is that of parent which is RM. Selasih Bhd.'s 2019 and 2020 draft statement of financial position prepared in its functional currency (CU) are as follows: Statement of financial position at 31 December 2020 CU 2019 CU Property, plant and equipment Inventory Trade and other receivables 840 870 150 250 200 300 Cash 494 1,784 200 1,520 Trade and other payables Таx рayable 160 100 99 259 126 226 Total liabilities Share capital Retained earnings 1,000 1,000 294 1,294 1,520 525 1,525 1,784 Total liabilities and equity

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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B. On 1 January 2019, Flower Bhd. acquired 75% of the issued share capital of Selasih Bhd where the currency is in CU. Selasih Bhd.s’ functional currency is that of parent which is RM. Selasih Bhd.'s 2019 and 2020 draft statement of financial position prepared in its functional currency (CU) are as follows: Statement of financial position at 31 December 2020 2019 CU CU Property, plant and equipment Inventory Trade and other receivables 840 870 150 250 300 494 1,784 200 200 1,520 Cash Trade and other payables Тах раyable 160 100 99 259 126 226 Total liabilities Share capital Retained earnings 1,000 294 1,294 1,520 1,000 525 1,525 1,784 Total liabilities and equity
Transcribed Image Text:B. On 1 January 2019, Flower Bhd. acquired 75% of the issued share capital of Selasih Bhd where the currency is in CU. Selasih Bhd.s’ functional currency is that of parent which is RM. Selasih Bhd.'s 2019 and 2020 draft statement of financial position prepared in its functional currency (CU) are as follows: Statement of financial position at 31 December 2020 2019 CU CU Property, plant and equipment Inventory Trade and other receivables 840 870 150 250 300 494 1,784 200 200 1,520 Cash Trade and other payables Тах раyable 160 100 99 259 126 226 Total liabilities Share capital Retained earnings 1,000 294 1,294 1,520 1,000 525 1,525 1,784 Total liabilities and equity
Additional information: The following spot currency exchange rates apply: 1 January 2019 1 December 2019 RM1 = CU2 RM1 = CU1.95 31 December 2020 RM1 = CU2.1 Weighted average for 2019 Weighted average for 2020 When the closing inventories were purchased in 2019 When the closing inventories were purchased in 2020 When equipment was bought and paid for in 2019 RM1 = CU2.11 RM1 = CU1.79 RM1 = CU1.95 RM1 = CU2.05 RM1 = CU1.9 Required: Translate Selasih Bhd.'s 2019 and 2020 statement of financial position from the entity's foreign currency (CU) to the entity's functional currency (RM).
Transcribed Image Text:Additional information: The following spot currency exchange rates apply: 1 January 2019 1 December 2019 RM1 = CU2 RM1 = CU1.95 31 December 2020 RM1 = CU2.1 Weighted average for 2019 Weighted average for 2020 When the closing inventories were purchased in 2019 When the closing inventories were purchased in 2020 When equipment was bought and paid for in 2019 RM1 = CU2.11 RM1 = CU1.79 RM1 = CU1.95 RM1 = CU2.05 RM1 = CU1.9 Required: Translate Selasih Bhd.'s 2019 and 2020 statement of financial position from the entity's foreign currency (CU) to the entity's functional currency (RM).
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