Calculate the translation gain or loss

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Question - Big Aussie Ltd acquired all of the shares of Utah Limited on 1 July 2035 for US$595,000. The equity section of the balance sheet of Utah Ltd on that date reported (in US$):

Share capital 255,000

Retained earnings 340,000

Total equity 595,000

The following exchange rates applied:

Start of the reporting period US$ 1.00 = AUD $1.82

End of reporting period US$ 1.00 = AUD $1.72

Average rate for year US$ 1.00 = AUD $1.78

In relation to the foreign currency translation reserve, calculate the translation gain or loss in relation to the net investment in the opening net assets of Utah Ltd.

Reference no: EM133100278

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