Aussie Ltd acquired 100% of Sing Sing Ltd (Sing Sing) on 1 July 20X0. The balance sheet of Sing Sing on that date was as follows:

The balance sheet of Sing Sing as at is as follows:
Balance sheet as at 30 June 20X1

Relevant exchange rates are as follows:

If the local currency of Sing Sing is Singapore dollars and the functional currency is Australian dollars the total assets of S$900,000 would translate into Australian dollars as:
A) $703 125.
B) $709 688.
C) $1 141 500.
D) $1 152 000.

Question

Aussie Ltd acquired 100% of Sing Sing Ltd (Sing Sing) on 1 July 20X0. The balance sheet of Sing Sing on that date was as follows:

The balance sheet of Sing Sing as at is as follows:
Balance sheet as at 30 June 20X1

Relevant exchange rates are as follows:

If the local currency of Sing Sing is Singapore dollars and the functional currency is Australian dollars the total assets of S$900,000 would translate into Australian dollars as:
A) $703 125. 
B) $709 688. 
C) $1 141 500. 
D) $1 152 000.

Quizplus · Accepted Answer

To convert the total assets of Sing Sing from Singapore dollars to Australian dollars, we need to use the exchange rate for the reporting date, which is S$1 = A$0.7875. Therefore:

S$900,000 x A$0.7875/S$1 = A$709,688

Therefore, the correct answer is B, $709,688.

Aussie Ltd Acquired 100% of Sing Sing Ltd (Sing Sing)