question archive Dianthus Ltd is a multinational company with headquarters in Queensland, Australia

Dianthus Ltd is a multinational company with headquarters in Queensland, Australia

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Dianthus Ltd is a multinational company with headquarters in Queensland, Australia. It is, however, listed on both ASX (Australian Securities Exchange) and TWSE (Taiwan Stock Exchange). It manufactures and sells cardboard boxes worldwide. Most of its products are manufactured in Taiwan, where it obtains local materials and labour. Its sales are invoiced in Australian dollars. Some other information about the company is displayed below. Sales breakdown by geographical segments 2020 2019 Sales in Australia 2.1 billion AUD 2.2 billion AUD Sales in Taiwan 2.51 billion TWD 2.04 billion TWD Sales to the rest of the world 0.5 billion AUD 0.4 billion AUD Value of listings on securities / stock exchanges ASX TWSE Number of shares 1,000,000 2,000,000,000 Price per share 510 AUD 2.4 TWD The company issues all of its bonds to both retail and institutional investors in Australia, currently worth AUD 215 million in the market. In the tables above, AUD refers to Australian dollars, whereas TWD refers to New Taiwan Dollar, and the approximate exchange rate is 1 AUD = 20 TWD. REQUIRED: What do you think is the functional currency of Dianthus Ltd? Discuss your answers in detail, with references to the information given above, and in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates'

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