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Week 5 Workshop Paris
Week 5 Workshop Paris
Week 5 Workshop Paris
FSL acquired all the issued shares of PEL, located in France, on 1 January 2021. PEL preparesits financial
statements using its local currency, the Euro (€). PEL balance sheet on 1 January 2021 is as follows:
Contributed Capital 2,100,000
Retained Earnings 3,500,000
Total Liabilities and Equity 6,600,000
The financial statements of PEL at 31 December 2019, the fiscal year end, are shown on
the Excel spreadsheet.
Additional information:
• Relevant exchange rates were as follows: 1
January 2021: €1.00 = NZ$1.50 15
September 2021: €1.00 = NZ$1.42 15
November 2021: €1.00 = NZ$1.43 31
December 2021: €1.00 = NZ$1.40
Average 2021: €1.00 = NZ$1.45
• The opening inventory was on hand at the time of the acquisition of PEL. The closing inventorywas
acquired on 15 November 2021.
• All of the plant assets (net) account relate to plant assets that were on hand at the time of the
acquisition.
• Sales, purchases and other expenses were incurred evenly throughout 2021.
Required:
(a) Using the Excel worksheet provided, translate the PEL financial statements into New Zealanddollars
(NZ$), which is the functional currency.