Jetson Ltd imports inventory from Germany Ltd and on 1 June ordered goods worth Euro 200000 The inventory is delivered on 15 July and payment is made on July 31. Jetson Ltd took out a hedge on 1 June to buy Euro on 31 July. Jetsons year-end is June 30. The following rates and contract values apply to this hedge:

What is the A$ inventory amount capitalised on 15 July upon its arrival? Hint: Give due consideration to both (i) the spot transaction for the underlying accounts payable recognition, and (ii) the classification, measurement, recognition and treatment of the cumulative gains or losses applicable to the forward contract, up to 15 July. You can assume that the forward contract is an effective hedge for the inventory purchase.

a. 322581

b. 302358

c. 261392

d. 318318

e. 289855

f. 305815

SPOT FWD PATE RATE VALUE AS DIFFERENCE RATE VALUE AS DIFFERENCE 11 - Jun 0.67 298507 0.621 322581 30-Jun 0.65 307692 9185 0.645 310078 -12503 15-Jul 0.69 289855 -17837 0.68 294118 - 15960 31-Jul 0.7 285714 -4141 0 0.7 285714 -8403