On 15 July 2023, Palya Ltd, an Australian company that has A$ as its functional currency, acquires
Question:
On 15 July 2023, Palya Ltd, an Australian company that has A$ as its functional currency, acquires land in Paris, France, for a cash consideration of €500 000. On 1 January 2024, Palya Ltd acquires inventories on credit for €75 000. Subsequently at 30 June 2024, Palya Ltd revalues the land to its fair value of €700 000. The inventories are still on hand at 30 June 2024 and have a net realisable value of €70 000. On 1 August 2024, Palya Ltd pays in full the inventories purchased. Relevant exchange rates are as follows.
Required
In accordance with AASB 121/IAS 21, prepare the necessary entries for Palya Ltd up until and including 1 August 2024.
Step by Step Answer:
There are two components included in the gain on revaluation of the land of A259 146 The trans...View the full answer
Financial Reporting
ISBN: 9780730396413
4th Edition
Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes
