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  3. the year 1 financial statements of the chinese sub

the year 1 financial statements of the Chinese subsidiary of singcom limited (a singaore based...

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Accounting

the year 1 financial statements of the Chinese subsidiary of singcom limited (a singaore based company) revealed the following beginning inventory $550,000 purchases 1,000,000 ending inventory 250,000 cost of goods sold 1,300,000 Singapore dollar (SGD) exchange rate for 1 CNY are as follows January 1. year 1 SGD 0.209 Average, year 1. 0.207 December 31, year 1. 0.204 the beginning inventory was acquired in the last quarter of the previous year, when the exchange rate was SGD 0.210= cny 1, ending inventory was acquired in the last quarter of the current year when the exchange rate was SGD 0.205=CNY 1

a) assuming that the current rate method is the appropriate method of translation, determine the amounts at which the Chinese subsidiary ending inventory and cost of goods sold should be included in Singcom's year 1 consolidated financial statement. b) assuming that the temporal method is the appropriate method of translation determine the amounts at which the Chinese subsidiary ending inventory and cost of goods sold should be included in Singcom's year 1 consolidated financial statements.

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