Economics · International Financial Reporting
Merik Co's functional currency is the US Dollar (USD). On 1 July 20X5, it purchased machinery for Zloty (ZLY) 800,000 and received a 6-month non-monetary customer deposit for services of ZLY 100,000. Under IAS 21, with exchange rates being ZLY 1 = USD 0.25 on 1 July and ZLY 1 = USD 0.28 on 31 December, what amounts are reported in the Statement of Financial Position on 31 December 20X5?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Machinery: $224,000; Customer Deposit: $25,000
- 2Machinery: $200,000; Customer Deposit: $28,000
- 3Machinery: $224,000; Customer Deposit: $28,000
- 4Machinery: $200,000; Customer Deposit: $25,000✓
Correct answer
Machinery: $200,000; Customer Deposit: $25,000
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