1USD=
1-Jan-19 1.50
1-Sep-19 1.56
1-Dec-19 1.57
31-Dec-19 1.60
average 2019 1.55
a) $NZ is the funactional currency
TL income statement Local currency $US Exchange rate
Sales revenue 2,000 1.55
Opening Inventory 200 1.50
Purchases 900 1.55
Ending inventory -100 1.57
Cost of Goods Sold 1,000
Gross Profit 1,000
Depreciation of equipment -500 1.50
Other expenses -200 1.55
-/+ foreign exchange gain/loss (if applicable)
Net Profit 300
Retained Earnings 1/1/19 3,700 1.50
Dividends -100 1.56
Retained Earnings 31/12/19 3,900
TL balance sheet
Contributed Capital 2,000 1.50
Retained Earnings 3,900
Foreign Currency Translation Reserve (if applicable)
Accounts Payable 2,000 1.60
Total Liabilities and Equity 7,900
Equipment (net) 3,000 1.50
Building 1,000 1.60
Inventory 100 1.57
Cash and accounts receivable 3,800 1.60
Total Assets 7,900
1/1/2019 US$ 000
Contributed Capital 2,000
Retained Earnings 3,700
Accounts Payable 1,000
Total Liabilities and Equity 6,700
Equipment (net) 3,500
Inventory 200
Cash and accounts receivable 3,000
Total Assets 6,700
Table 1 (T1)
The impact of changes in exchange
rates on the net monetary position
Net montary position 1.1.2019 2,000 1.50
Sales 2,000 1.55
Purchases - 900 1.55
Other expenses - 200 1.55
Purchase of buiding - 1,000 1.60
Dividends - 100 1.56
Net monetary posiiton 31.12.2019 1,800 1.60
FC gains
Table 2 (T2)
The impact of changes in exchange rates on net asset posiiton
Net asset posiiton 1.1. 2019 5,700 1.50
Net profit 300
Dividends - 100 1.56
Net asset position 31.12.2019 5,900 1.60
FC translation reserve
a) $NZ is the funactional currency b) $US is the functional currency
$NZ (presentation currency Exchange rate $NZ (presentation currency)
3,100 1.55 3,100
300 1.50 300
1,395 1.55 1,395
- 157 1.57 - 157
1,538 1,538
1,562 1,562
- 750 1.55 - 775
- 310 1.55 - 310
241 T1
743 477
5,550 1.50 5,550
- 156 1.56 - 156
6,137 5,871
3,000 1.50 3,000
6,137 5,871
- 569 T2
3,200 1.60 3,200
12,337 12,640
4,500 1.60 4,800
1,600 1.60 1,600
157 1.60 160
6,080 1.60 6,080
12,337 12,640
3,000
3,100
- 1,395
- 310
- 1,600
- 156
2,639
2,880
241
8,550
477
- 156
8,871
9,440
569
