Asian Macro Ltd, a Singapore company, has an 80% interest in AMCO Inc in the United States, and a 40% interest in OZCO Corporation in Australia. The financial statements of AMCO and OZCO for the years ended 31 December 20x3 and 20x4 are as follows:

Additional information

(a) AMCO Inc was incorporated by Asian Macro on 31 December 20x1. There had been no change in the share capital of the company since then.

(b) Asian Macro acquired the 40% interest in OZCO on 31 December 20x2 when the share capital and retained earnings of OZCO were A$10,000,000 and A$10,000,000, respectively. The investment cost was A$8,000,000. The fair values of assets and liabilities were similar to their book values.

(c) On 1 December 20x4, OZCO revalued its properties, which resulted in a revaluation surplus of A$2,000,000.

(d) OZCO paid a dividend of A$1,000,000 on 31 December 20x4. AMCO paid a dividend of US$13,000,000 on the same date.

(e) Relevant exchange rates are as follows:

(f) The functional currencies of AMCO and OZCO are the US dollar (US$) and the Australian dollar (A$), respectively. The presentation currency of Asian Macro Ltd is the Singapore dollar (S$).

Required

1. Translate the financial statements of AMCO Inc for 20x3 and 20x4.
2. Show the amount reported under Foreign Currency Translation Reserves in Asian Macro’s consolidated Statement of Financial Position as at 31 December 20x4.
3. Show the amount under the account “Investment in OZCO Corporation” in Asian Macro’s consolidated Statement of Financial Position as at 31 December 20x4.

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Sales Cost of goods sold Gross profit... Operating expenses Profit before tax. Taxation...... Profit after tax.. Comparative Income Statements For the Years Ended 31 December 20x3 and 20x4 AMCO 20x4 US$ '000 48,000 (36,000) 12,000 (7,000) 5,000 (2,000) 3,000 20x3 US$ '000 42,000 (29,000) 13,000 (6,000) 7,000 (3,000) 4,000 20x4 A$ '000 25,000 (18,000) 7,000 (4,000) 3,000 (1,000) 2,000 OZCO 20x3 As '000 38,000 (30,000) 8,000 (5,000) 3,000 (1,000) 2,000