Foreign currency transactions
Organic Milk limited (Organic) sells milk and operates from central Auckland, New Zealand. Organic reports in accordance with the IFRS. Organic Milk has just delivered milk to a client based in Sydney, Western Australia. The contract price was AUD $6,000,000, with payment due within 30 days of delivery. The milk was delivered and accepted by […]
IAS 16 & 23 – PPE & borrowing cost calculation
You are a Chartered Accountant working for Exp Limited (Exp). Exp signed a contract on 1 January 20×8 to purchase a new machine. The value of the contact is 10 million, payable in installments: 20% on signing of the contract 30% in six months 30% on delivery (31 March 20×9) 20% 1 month after delivery […]