The Following Information Relates to Question
Aussie Ltd Acquired $\text { Statement of Financial Position as at } 1 \text { July } 20 \times 0$

question 5

Multiple Choice

The following information relates to question
Aussie Ltd acquired 100% of Sing Sing Ltd (Sing Sing) on 1 July 20X0. The statement of financial position of Sing Sing on that date was as follows:
$\text { Statement of Financial Position as at } 1 \text { July } 20 \times 0$
$\begin{array}{lrlr}&S\$&&S\$\\\text { Machinery at cost } & 280,000 & \text { Share capital } & 200,000 \\\text { Investment property } & 200,000 & \text { General Reserve } & 100,000 \\\text { Receivables } & 50,000 & \text { Retained earnings } & 300,000\\\text { Cash }&70,000\\&600,000&&600,000\end{array}$ The statement of financial position of Sing Sing as at 30 June 20X1was as follows:
Statement of Financial Position as at 30 June 20X1
$\begin{array}{lrlr}&S\$&&S\$\\\text { Machinery- carrying value } & 150,000 & \text { Share capital } & 200,000 \\\text { Investment property } & 200,000 & \text { General Reserve } & 100,000 \\\text { Trade receivables } & 250,000 & \text { Retained earnings } & 500,000 \\\text { Cash } & 300,000 & \text { Trade payables } & 85,000 \\& & \text { Income tax payable } & 15,000\\&900,000&&900,000\end{array}$
Relevant exchange rates are as follows:
$\begin{array}{llll}&A\$&&S\$\\1 \text { July } 20 \times 0 & 1.00 & = & 1.25 \\30 \text { June } 20 \times 1 & 1.00 & = & 1.28 \\\text { Average } 20 \times 0-\times 1 & 1.00 & = & 1.18\end{array}$
-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

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Definitions:

Compounded Annually

Interest on an investment or loan calculated once a year, where each year's interest is added to the principal.

Future Value

The estimated value of an investment at a future date, taking into account variables like interest rates or compound interest, used in financial planning and assessment.

Interest Rate

The fraction of a loan amount that is applied as interest for the borrower, commonly indicated as an annual percentage of the remaining loan balance.

Compounded Annually

Interest calculation method where interest is added to the principal at the end of each year, and future interest calculations include this additional amount.