h. On 1 July 2017, WWW Ltd acquired all the issued shares of Nes Whisky (SCT) Ltd, a Scottish whisky distillery for AUD $740 000 cash. i. An extract of Nes Whisky Ltd’s balance sheet immediately before the acquisition is shown below (GBP): NOTE: you will need to translate this information before completing the acquisition analysis. Use the functional currency amounts to apply tax effect accounting. Nes Whisky (SCT) Ltd Shareholders’ equity GBP Share capital 160,000 General reserve 58,000 Retained profits 132,000 j. Relevant exchange rates are as follows: 1 July 2016 1 GBP = AUD$1.80 1 July 2017 1 GBP = AUD$1.69 1 July 2018 1 GBP = AUD$1.78 1 July 2019 1 GBP = AUD $1.81 31 December 2019 1 GBP = AUD$1.89 30 June 2020 1 GBP = AUD$1.80 Average rate for the year 2020 1 GBP = AUD$1.90 Ending inventory acquired 1 GBP = AUD$1.88 k. A comparison of the carrying amounts and fair values of Nes Whisky Ltd’s identifiable assets at acquisition indicated no differences
