Rudd Ltd, an Australian entity purchased Lee Ltd and Kew Ltd on 1 July 2012. Both entities are considered foreign operations of Rudd Ltd based in Singapore. The following information was extracted from the foreign operation's accounts for the period ended 30 June 2015:

Exchange rate information is:

The translation from Singapore dollars to Australian dollars resulted to the following balances:

Which of the following translation processes were applied to Lee Ltd and Kew Ltd, respectively, for the year ended 30 June 2015?
A) Functional currency; Presentation currency;
B) Functional currency; Functional currency;
C) Presentation currency; Functional currency;
D) Presentation currency; Presentation currency;
E) None of the given answers.

Question

Rudd Ltd, an Australian entity purchased Lee Ltd and Kew Ltd on 1 July 2012. Both entities are considered foreign operations of Rudd Ltd based in Singapore. The following information was extracted from the foreign operation's accounts for the period ended 30 June 2015:

Exchange rate information is:

The translation from Singapore dollars to Australian dollars resulted to the following balances:

Which of the following translation processes were applied to Lee Ltd and Kew Ltd, respectively, for the year ended 30 June 2015?
A) Functional currency; Presentation currency; 
B) Functional currency; Functional currency; 
C) Presentation currency; Functional currency; 
D) Presentation currency; Presentation currency; 
E) None of the given answers.

Quizplus · Accepted Answer

The Answer of Rudd Ltd, an Australian entity purchased Lee Ltd and Kew Ltd on 1 July 2012. Both entities are considered foreign operations of Rudd Ltd based in Singapore. The following information was extracted from the foreign operation's accounts for the period ended 30 June 2015:

Exchange rate information is:

The translation from Singapore dollars to Australian dollars resulted to the following balances:

Which of the following translation processes were applied to Lee Ltd and Kew Ltd, respectively, for the year ended 30 June 2015?
A) Functional currency; Presentation currency; 
B) Functional currency; Functional currency; 
C) Presentation currency; Functional currency; 
D) Presentation currency; Presentation currency; 
E) None of the given answers.

Rudd Ltd, an Australian Entity Purchased Lee Ltd and Kew