Blue Ltd, an Australian company, incorporated a foreign subsidiary Grey Ltd on 1 July 20X1 with capital contribution of FC $100,000. ‘FC’ is a foreign currency used as the functional currency of Grey Ltd. The presentation currency of the Blue Group is AUD. The trial balance of Grey Ltd in FC at 30 June 20X2 is as follows:

Grey Ltd Trial balance at 30 June 20X2
	FC		FC
	DR.		CR.
Total assets	400,000
Total liabilities			200,000
Issued capital			100,000
Sales			160,000
Cost of sales	20,000
Cash expenses	30,000
Depreciation	10,000
	460,000		460,000

Included in the total assets is a building purchased on 1 July 20X1 with FC$800,000. Payment of the cash expense was made on 1 October 20X1. Sale, purchase and other expenses were incurred evenly throughout the year. No dividends were paid or declared by Grey Ltd during the year. Ignore income tax

Exchange rates at various dates during 20X2 are as follows:

1-Jul-20X1	FC 1.00 = AUD $2.00
1-Oct-20X1	FC 1.00 = AUD $2.10
30-Jun-20X2	FC 1.00 = AUD $2.30
Average rate of FY20X2	FC 1.00 = AUD $2.20

Required:

Calculate the translated ending balance in AUD for the “Foreign Currency Translation Reserve” account in the translated statement of financial position for Grey Ltd as at 30 June 20X2

Answer rating: 100% (QA)

Note Sorry for correction Its mentioned in the question that Building value is 800000 which is inclu... View the full answer