Identify the functional currency of Magnolia Ltd.

Magnolia is a multinational Australian company listed on both the ASX and the London

 

Stock Exchange (LSE). It manufactures and sells sunglasses. Its sunglasses are manufactured

in the Philippines, where it sources its labour and raw materials. Magnolia’s main markets

for its product are located in Australia (45%) and the United Kingdom (55%). Its sales are

invoiced in Australian dollars and its most recent equity offering was on the LSE.

Required

(a) Identify the functional currency of Magnolia Ltd.

(b) What would be the presentation currency of Magnolia Ltd? (LO1)

 

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