Question

Master Limited has the following items in its statement of profit or loss and other comprehensive income for the year ended 30 June 2018: Revenue FC*130,000 Cost of goods sold FC45,000 Other expenses FC14,000 Income tax expense FC12,000 *FC = Foreign Currency. All items were earned and incurred evenly across the year. The following exchange rates applied: End of reporting period FC1 = $1.46 Average rate for year FC1 = $1.41 The net profit after tax translated into the presentation currency is:

Answer 1

Statement of Profit or Loss and Other Comprehensive Income

for the year ended 30^th June, 2018

Particulars	Amount (FC)	Translation Rate	Amount ($)
Revenue	130,000	$1.41	183,300
Less: Expenses
Cost of Goods Sold	45,000	$1.41	63,450
Other Expenses	14,000	$1.41	19,740
Income tax expense	12,000	$1.41	16,920
Total Expenses	71,000		100,110
Net profit after tax	59,000		83,190

Since all the items were earned and incurred evenly across the year, average rate for the year is used.