Awesome Furniture Ltd, an Australian company that uses the...

Awesome Furniture Ltd, an Australian company that uses the Australian dollar (AUD) as its functional currency, imports and sells furniture. Purchases made from foreign suppliers are denominated in foreign currency (FC). 
 

An order for FC 75,000 of furniture was placed with a foreign supplier in April 2020 and the inventory was shipped, FOB shipping point, on 15 May 2020. The amount was payable to the foreign supplier on 20 July 2020.
 

Concerned about possible adverse exchange rate changes, Awesome Furniture Ltd entered into a forward exchange contract with the Eastpac Bank on 15 May 2020. The terms of the contract were that on 20 July 2020, Awesome Furniture Ltd would deliver AUD to the Eastpac Bank in exchange for FC 75,000 at a forward rate of AUD 1 = FC 0.70.
 

The relevant exchange rates were as follows:

Date	Spot Rate	Forward Rate (for 20 July 2020)
15 May 2020	AUD 1 = FC 0.80	AUD 1 = FC 0.70
30 June 2020	AUD 1 = FC 0.72	AUD 1 = FC 0.68
20 July 2020	AUD 1 = FC 0.65	AUD 1 = FC 0.65

 

The hedging arrangement was designated as a fair value hedge. Assume that the hedge arrangement qualified for hedge accounting under AASB 9 Financial Instruments. Also assume a discount rate of 0% for fair value calculations. The end of the reporting period for Awesome Furniture Ltd is 30 June.

 

What was the amount of Australian dollars the Awesome Furniture Ltd delivered to the Eastpac Bank on 20 July 2020 in exchange for FC75,000? How much would they have delivered if they had not entered into the forward exchange contract? Did awesome furniture Ltd benefit from entering into the forward exchange contract?