Reference no: EM133114891
Question - Foreign transactions and entities' reporting obligations as per IAS 21.
Quantum Ltd is an Australian IT company listed on the Australian and New York securities exchanges. The company has established production facilities in Silicon Valley, Taiwan and India, as well as in Australia.
Employees are remunerated in their local currencies. However, all purchases of IT components, equipment, plant and machinery are denominated in $US dollars. All sales are denominated in $US dollars. All borrowings are in $US dollars and come mostly from USA-based banks.
Most equity capital has been raised within Australia, although in recent years new shares have also been issued on the New York Stock Exchange.
Current shareholding ratios: 70% per cent of issued shares are held by Australian shareholders. The balance is held by USA residents (20%) and Indian residents (10%).
Required -
a) Determine the functional currency of Quantum Ltd.
b) Then determine the presentation currency of Quantum Ltd.
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