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:

Meagre Savings

A small amount of money saved, often insufficient to cover significant emergencies or long-term needs.

Plight

A dangerous, difficult, or otherwise unfortunate situation that someone or a group of people faces.

Family Wealth

The total value of all financial and non-financial assets owned by members of a family unit, minus any debts.

Wealth Increase

The growth in the value of an individual's or entity's assets and financial resources, leading to an improvement in their financial condition and potential standard of living.