On 1 July 2017, a UK company formed a foreign subsidiary in a country which has the Florin (Fn) as its currency. The summarised financial statements of this subsidiary for the years to 30 June 2018 and 2019 are as follows:

Statements of comprehensive income for the year to 30 June.

Statements of financial position as at 30 June.

Exchange rates are as follows:

1 July 2017............. ?1 = Fn 630 June 2018......... ?1 = Fn 430 June 2019......... ?1 = Fn 4.8

The average exchange rate for the year to 30 June 2018 was ?1 = Fn 5 and the average exchange rate for the year to 30 June 2019 was ?1 = Fn 4.5

Required:

Translate the financial statements for both years into ? sterling, in accordance with the requirements of IAS21.

Transcribed Image Text:

2018 Fn 67,200 40,320 2019 Sales revenue Fn 71,820 41,580 Expenses Profit for the year 26,880 30,240 2018 2019 Fn Fn Assets 112,400 145,920 Share capital (issued 1 July 2017) Retained eamings 60,000 26,880 60,000 57,120 86,880 117,120 Liabilities 25,520 28,800 112,400 145,920