Aus Ltd Has Control Over Hong Ltd $\quad$ $\quad$ HK$100 =

question 7

Multiple Choice

Aus Ltd has control over Hong Ltd.The functional currency of Hong Ltd is HK$, its domestic currency.On 28 February 20X4 Hong Ltd purchased a building for HK$8 million.Aus Ltd uses its domestic currency, the A$, as its presentation currency.
The relevant spot rates are:
28 February 20X4 $\quad$$\quad$ HK$1.00 = $\quad$ A$0.22
1 July 20X6 $\quad$$\quad$$\quad$$\quad$ HK$1.00 = $\quad$ AS0.20
30 June 20X7 $\quad$$\quad$$\quad$ HK$1.00 = $\quad$ A$0.17
-What is the amount of this building in Aus Ltd's consolidated financial statements for the reporting period ending 30 June 20X7?

• A)$1 600 000
• B)$1 360 000
• C)$10 000 000
• D)$2 000 000

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Definitions:

Duty of Care

A legal obligation which requires adherence to a standard of reasonable care while performing acts that could foreseeably harm others.

Trespasser

A person who intentionally and without consent or privilege enters another’s property.

Partially At Fault

A situation where more than one party shares responsibility for a wrongful action or incident.

Occupier's Rights

Rights that grant an individual or entity the authority to use and control a property, without necessarily owning it.