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On 1st June 2021, Nutella Ltd, an Australian company with a functional currency of A$, entered business purchasing inventory from their suppliers in Samoa Tala $ when the exchange rate was A$1.00 = Samoan Tala $2.10. On 30thJune 2021 the exchange rate is A$1.00 = Samoan Tala $2.30. The transaction was settled on 10th July 2021 when the exchange rate was A$1.00 = Samoan Tala $2.20   Required Translate the following for initial and Subsequent measurements and calculate the realised gain or loss on translation.  1. Inventories and accounts payable of Samoa Tala $ 100 000

On 1st June 2021, Nutella Ltd, an Australian company with a functional currency of A$, entered business purchasing inventory from their suppliers in Samoa Tala $ when the exchange rate was A$1.00 = Samoan Tala $2.10. On 30thJune 2021 the exchange rate is A$1.00 = Samoan Tala $2.30. The transaction was settled on 10th July 2021 when the exchange rate was A$1.00 = Samoan Tala $2.20   Required Translate the following for initial and Subsequent measurements and calculate the realised gain or loss on translation.  1. Inventories and accounts payable of Samoa Tala $ 100 000

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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On 1st June 2021, Nutella Ltd, an Australian company with a functional currency of A$, entered business purchasing inventory from their suppliers in Samoa Tala $ when the exchange rate was A$1.00 = Samoan Tala $2.10. On 30thJune 2021 the exchange rate is A$1.00 = Samoan Tala $2.30. The transaction was settled on 10th July 2021 when the exchange rate was A$1.00 = Samoan Tala $2.20

 

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Translate the following for initial and Subsequent measurements and calculate the realised gain or loss on translation.

 1. Inventories and accounts payable of Samoa Tala $ 100 000

 

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