On 1 July 2017, a UK company formed a foreign subsidiary in a country which has the Florin (Fn) as its currency. The summarised of this subsidiary for the years to 30 June 2018 and 2019 are as follows:
Statements of comprehensive income for the year to 30 June.
Statements of financial position as at 30 June.
Exchange rates are as follows:
1 July 2017…………. £1 = Fn 6
30 June 2018……… £1 = Fn 4
30 June 2019……… £1 = Fn 4.8
The average for the year to 30 June 2018 was £1 = Fn 5 and the average for the year to 30 June 2019 was £1 = Fn 4.5
Required:
Translate the for both years into £ sterling, in accordance with the requirements of IAS21.
