On 1 September 2015 Antique Furniture Importers acquires furniture from a supplier in Europe.The furniture is shipped f.o.b.from Brussels on 1 September 2015.The cost of the furniture is €500 000.The amount has not been paid at 30 September 2015.Exchange rates are as follows:

\begin{array} { | l | l | } \hline 1 \text { September } 2015 & \text { A\$1.00 } = € 0.52 \\\hline 30 \text { September } 2015 & \text { A\$1.00 } = € 0.58 \\\hline\end{array}

What is the amount payable at 1 September and 30 September 2015in Australian dollars (rounded to the nearest whole A$)?
Did the Australian dollar strengthen or weaken?
A)

\begin{array} { | l | l | } \hline 1 \text { September } 2015 & \$ 260000 \\\hline 30 \text { September } 2015 & \$ 290000 \\\hline\end{array}

The Australian dollar weakened.
B)

\begin{array} { | l | l | } \hline \text { 1 September } 2015 & \$ 1041667 \\\hline 30 \text { September } 2015 & \$ 1190476 \\\hline\end{array}

The Australian dollar strengthened.
C)

\begin{array} { | l | l | } \hline \text { 1 September } 2015 & \$ 961538 \\\hline 30 \text { September } 2015 & \$ 862069 \\\hline\end{array}

The Australian dollar strengthened.
D)

\begin{array} { | l | l | } \hline 1 \text { September } 2015 & \$ 240000 \\\hline 30 \text { September } 2015 & \$ 210000 \\\hline\end{array}

The Australian dollar weakened.

AASB 121 Requires Foreign Currency Transactions to Be Recorded,on Initial

True/False

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