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Bansai is a public Limited Company with a reporting date of 31 December 20X1 and a...

Bansai is a public Limited Company with a reporting date of 31 December 20X1 and a functional currency of dollars ($). On 30 June 20X1, it purchased land, on credit, from overseas at a cost of 30 million dinars. The land is an item of PPE and is measured using cost model. At the year end, the full amount remains outstanding.

Exchange rates are as follows:
As at 30 June 20X1 3.0 Dinars: $1
As at 31 December 20X1 2.0 Dinars: $1
Average rate for the year-ended Dec 20X1          2.5 Dinars: $1
The fair value of the land at 31 December 20X1 was 32 million dinars.

Required:

Prepare journals to show how the above contract should be accounted for under IAS 21, for the year ended 31 December, 20X1. (5 marks)

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