Translate the following Balance sheet of XYZ Ltd. Which is an Indian based multinationalcompany doing business in UK using Current rate, Current/Non-current method, and monetarynon-Monetary and temporal method and show the Cumulative translation Adjustment. You arerequired to prepare the Consolidated Balance Sheet under all methods. Assume the Current rate ofexchange INR/GBP as on 31“ December 2018 is 94.1041 and Historical exchange rate GBP/INRas on 1" January 2018 was 0.01063 and average rate is INR/GBP was at 86.2458Balance sheet of XYZ Ltd as on 31 December 2018.(Parent)AssetsAmount in GBPAmount in INRcash at bank7526624658Deferred Tax assets4500373500Receivables from debtors5350444050Derivative financial assets8635716705LicencesLand160001328000260002158000Accrued interest87150010500785116516413Liabilities and EquityPayables to creditorsAccrued expensesCapital lease due545645284816521137124311000913000Share capital455343779322785116516413B.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 itemson CTA in future.

Consolidated financial statement is the combined financial statement of the parent and subsidiary…

Answered: Translate the following Balance sheet…

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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How to translate a foreign subsidiary’s financial statements into its parent’s reporting currency using the current rate method and calculate the related translation adjustment?

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