ACCA · Question 09 · Financial Reporting
Section A
Artisan Global is a cross-border e-commerce company with a functional currency of the Dollar ($). On 1 November 20X4, Artisan bought goods from a foreign supplier for 120,000 Dinars. The goods remained in inventory at the year-end of 31 December 20X4. The invoice was paid on 15 January 20X5.
Exchange rates (Dinars to $1):
1 November 20X4: 4.8
31 December 20X4: 5.0
15 January 20X5: 5.2
What is the carrying amount of the inventory and the trade payable in the statement of financial position as at 31 December 20X4?
Answer options:
Inventory: $24,000; Trade Payable: $24,000
Inventory: $25,000; Trade Payable: $25,000
Inventory: $25,000; Trade Payable: $24,000
Inventory: $23,077; Trade Payable: $23,077
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