Question 3 Translate the following Balance sheet of XYZ Ltd. Which is an Indian based multinational company doing business in UK using Current rate, Current/Non-current method, and monetary non-Monetary and temporal method and show the Cumulative translation Adjustment. You are required to prepare the Consolidated Balance Sheet under all methods. Assume the Current rate of exchange INR/GBP as on 31st December 2018 is 94.1041 and Historical exchange rate GBP/INR as on 1st January 2018 was 0.01063 and average rate is INR/GBP was at 86.2458 Balance sheet of XYZ Ltd as on 31 December 2018. (Parent) Amount in INR Assets Amount in GBP cash at bank 7526 624658 Deferred Tax assets 4500 373500 Receivables from debtors 5350 444050 Derivative financial assets 8635 716705 Licences 16000 1328000 Land 26000 2158000 Accrued interest 10500 871500 78511 6516413 Liabilities and Equity Payables to creditors 5456 452848 Accrued expenses 16521 1371243 Capital lease due 11000 913000 Share capital 45534 3779322 78511 6516413 B. Identify and explain which of the items given in the balance sheet created high impact for CTA. C. Advice the company regarding the steps to be taken by them to reduce the impact of such items on CTA in future.
Question 3 Translate the following Balance sheet of XYZ Ltd. Which is an Indian based multinational company doing business in UK using Current rate, Current/Non-current method, and monetary non-Monetary and temporal method and show the Cumulative translation Adjustment. You are required to prepare the Consolidated Balance Sheet under all methods. Assume the Current rate of exchange INR/GBP as on 31st December 2018 is 94.1041 and Historical exchange rate GBP/INR as on 1st January 2018 was 0.01063 and average rate is INR/GBP was at 86.2458 Balance sheet of XYZ Ltd as on 31 December 2018. (Parent) Amount in INR Assets Amount in GBP cash at bank 7526 624658 Deferred Tax assets 4500 373500 Receivables from debtors 5350 444050 Derivative financial assets 8635 716705 Licences 16000 1328000 Land 26000 2158000 Accrued interest 10500 871500 78511 6516413 Liabilities and Equity Payables to creditors 5456 452848 Accrued expenses 16521 1371243 Capital lease due 11000 913000 Share capital 45534 3779322 78511 6516413 B. Identify and explain which of the items given in the balance sheet created high impact for CTA. C. Advice the company regarding the steps to be taken by them to reduce the impact of such items on CTA in future.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 3
Translate the following Balance sheet of XYZ Ltd. Which is an Indian based multinational
company doing business in UK using Current rate, Current/Non-current method, and monetary
non-Monetary and temporal method and show the Cumulative translation Adjustment. You are
required to prepare the Consolidated Balance Sheet under all methods. Assume the Current rate of
exchange INR/GBP as on 31st December 2018 is 94.1041 and Historical exchange rate GBP/INR
as on 1st January 2018 was 0.01063 and average rate is INR/GBP was at 86.2458
Balance sheet of XYZ Ltd as on 31 December 2018.
(Parent)
Amount in INR
Assets
Amount in GBP
cash at bank
7526
624658
Deferred Tax assets
4500
373500
Receivables from debtors
5350
444050
Derivative financial assets
8635
716705
Licences
16000
1328000
Land
26000
2158000
Accrued interest
10500
871500
78511
6516413
Liabilities and Equity
Payables to creditors
5456
452848
Accrued expenses
16521
1371243
Capital lease due
11000
913000
Share capital
45534
3779322
78511
6516413
B. Identify and explain which of the items given in the balance sheet created high impact for CTA.
C. Advice the company regarding the steps to be taken by them to reduce the impact of such items
on CTA in future.
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