FINANCIAL REPORTING

Board Notes (Nov’23) of Big IND AS – By CA Aakash Kandoi

#FRwithAK
S.
Topic Name Page No.
No

1 IND AS 103 – Business Combination 1

2 IND AS 110 - Consolidated Financial Statement 56
3 IND AS 111 – Joint Arrangements 124
4 IND AS 28 – Investments in Associates & Joint Venture 131
5 IND AS 102 – Share Based Payments 152
6 IND AS 115 – Revenue from Contracts with Customers 184
7 IND AS 116 – Leases 223
8 Financial Instruments 276
All Other IND AS – Class Board Notes
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 IndAst03_ Business Combination
fi I I I
Def of 2 Control 3 Business 4 Asset 5 Accottingfor
Bush H Acquisition
Comb CIndas110 Bush Combn
3 1 Elements 3.2 Concentration
of 6 Steps
i Bush Test

d d
G Common Control 7 Demeter 8 Ieventer 9 Other Important
Transactions Acquisition Points

Danger
under
Demerger
Not under A Measurement
c s
B Determining
common common period what ispart
control control of
BushComb

1
 Def of Bush Combination

Purchasing Co Acquirer Padent Co r Indas 103

Seng co Acquired Subs Co

AKITA Mukund
BC Acquirer obtains control over acquiree's Bush

By admiring By acquiring All assets

more than 507 liabilities of acquired
stake

than 50 stake By acquiring all Assets liabilities

thy By acquiring more

J
L
Purch Co Sells co
PurchasingCo acquirer Selling Co
Parent acquired
subsidiary SFS CFS Closed
He A
SFS Ind AS CFS
He 27
u
Inestin Subsshares He

Tock 1 3 110 Records all Mourad

IFS Individual Assets A liar CFS
of acquired as sell 9Co
Ay Every ur
He
Ind AS103
is closed
Date of Acquisition end
of control He

ItdAS 103 Ind AS 110

BurnCowboy CFS

SFS Sepedate Financial stat

CFS Consolidated Fin Stat
IFS Individual Fin Stat 2
 Asset Acquisition which is Not a Bash Camb
Here we acquire only few Assets Not full Bush
v
Ind AS 16 38,40

Consideration
Eg AK Itd purchased land Pam paid 18ft legal
cost
Futiocr File scr
for land
PassJ E
10
If
land Arc Da kept 180 15 Directly
SME r pain at Da Ger Mcr x 5 15 Attri
Exp
PIL GO
n
TO dB 18er
TO CIBClegalcost ler

no Pll on Purchase No Gw arises

on purchase
of Assets

3
 Accounting for Bush Courts
He

AK Hd acquired Makka Itd on 01 ou X1 for 7150 or

Net Assets of Mukku Itd were 7110 er

steps Refer Concept Book

EE Deferred Consideration
011041 1 Ak Itd acquired Mukku Hd forPc 7100 crores cash
NetAssets of Mekka Hd 7250 codes
Also All Hd promised 200 crores in cash will be after2yrs
He
paid He
Deferred Consideration DF lot
pC Present value
PY 200 165 29 er
1.1012
Total Pc paid 100 crores 16529crores
265.29 crores
j Efor
Bogdan MA Ale Da 250 er
GW Ale Da 15 29
TO PI
CIB loder

Poyet 16529
any

Def Caus Day 165029 unwinding After 2 us pay 2200 er

Jell
lot Cls
arsed Jyp 98.18 ur Open

FIT 16.53 I 16529 16.53

18.18
181.82

TOProvfor DefCary 16.53 ProvforDefCons 200 2 181.82 200

TO CIB 200 4
Es Contingent Consideration
AK Hdacquired Malaka Hd for Pc Cash 100 er
NetAssets of Mak ku Itd I 250 er
After 24ns Ak Itd will pay 300 crores in cash provided Mukku's profit
exceeds 2500 crore in Next 2 years
Day FX of
Coating 7190 crores
Contingent consideration
Cous He
PC included Fairway Ight
He
Pittprob Always given in
total PC 100 er t 19ger 290 er the ques

Isn couting
Court

FEI NA AK Dd 250 er

for Bush Gee Ale Da 40 er

Comb
TO PI
Cash 100 Cr
Prov
fore 190er Fair value

ur end is Remeasured Arend

contingent consideration Fv
s on

F v of CC on ur lend 260cry Given

artend
PIC Ale Da 70 or
TO Prov force to er
260 190

5
 Ur2ends
Target Not met
Protfor Cc Reverse
My force 2300 crores
PIL Ale Da 40 Prov for CC Ale Da 260 er
TOProvforce 40 TO PIL All 260 Cr

Prov for CC Ale 300

TO CIB 300

Suppose in above eg instead of F 300 crores cash 51 shares

were offered as
contingent consideration

Re FY of CC will be consideration
Alding same s ie Day
But on Each ar end Prov for cc will Not be remeasured
as fixed Mo of shares are
promised

def summary for contingent consideration pepnggg.gg

we
µ of Éathyuanameno
ofshares Fixed Motof
shares

o e
s
Day Trend Day
Include
it
Remeasure
a
Include in
Ted
not remeasure
in thorough Pe on ur end
Pc fair value
Fairneater pu

6
 Contingent Payment to Employee Shareholders

FIL it acquired Mukkuitd SH Emp

In the capacity
In the th Jehetu
of capacity
offered
employee of Spy Teeth
He He He
Notform form
part of PC
will
part of ninny
Pe

SBP Awards
0104 21 SBP
Akita Mukkultd I 01.04.19
acquired Announced
acquirer acquire I
yap 59ns

d Emp 100 emp

d k
Itd on 01 ou 21 No ofoptions
508pm.org

y g

Mekka Books Akita

01 04 19 GD No entry 01.04.21 SBP plan Acqjred.tt Reseme
31 03.20 EBE 7L ML
TOSBPRese 7L 31.3.22 EBE Ale FL
faux 500 70 48 TOSBPRese FL

31 3 23 EBE FL
31.3.21 EBE 72 TOSBP Reset
TOSBPRese FL
31 3 24 EBE 7L
TOSBPRese FL

31.3.24 Ak Books SBP Reser 21 lakhs 7

 AK 313 24 underSBP 100 500 70
sagIssue 35L
35L

Ak Ext 142 Extra

H
SBPReserve
pe Given by Akita to
21 Lakhs Mekka Hel on
Date ofAcqn
V
O
pea Ale Dd

Earn
provforD C
Provforce
SBPReserve 142

Shd SBp plan Acquired by Ak ltd

te t
Pre Comb Period 24ns PostComb Period 3yrs
it 21L
I
Total FY of OGSBP X Expired Notformpart of Pc
Period
A
Total O G UP Total Revised
Vip whichever Acquirer AKHd Books
70 over the remaining
100 500 higher
period of 3yrs
3543
14L pc include

xp
vesting period
8
Illust
sap award Replaced
i
2
Pre Comb Lys Post Comb Acquirer
He will
Book
Fu of OG SBPAward x Expired FY of
period curb during
Replaced E remaining
Total G UP or Total Rey up Award YP
Canicuever is higher
600 El 200

500 X 2 d
µ

200 took Fx ofReplaced

away we
ie 600 This Fair
g value is as
per the
share price of acquirer
2 in future acquirer will
Book 2 issue shares
Based on his own
share price

9
 Ina of acquire subs Fair value
Stef
Exceptions

classification
oftease
cannatange

other Exceptions clarifications to the Recogte Meas principle

Contingent liab CIndAs3Idisyse

I

1 Poss ob 2 Presentobligation 3 Presentobligation

Past Events Past Event Past Event
outflow ofResources outflow is OTProb outflow is Prob
Aunt Est reliably Aut Est reliab AutCAM
As 37 Disclose beEst.Td
disclose Disclose
Ind As103 Disclose Iud AS103 Record Ind As103 Disclose
He
in INA anot Pe
Frame on Date ofAcqn
He
0
If nothing is mentioned about
10 contingent ab given in the
ay t.pe
ques Assume 2nd
DefnwaalicoutciabisgivenCLC2nd
pefn0cr.i e take over the same
in step IMA

10
 Indemnification Asset ReimbAsset

Against lick Against Couthiab Against Cont

Record Recordedin a lab
u
I Ind AS 103 Disclose
underIndias
Indemnification Asset Indem Asset
u
Record 3 Record in Indem Assets
in IMA IMA Disclose

Note Amt of Indemnification Asset cannotexceed the aunt of liab

G Re acquiredRights
150 cooee
JeetattdIyrs
You x1 Akita frumpy E
franchise Franchise 150 crores

After 64ns
ie on

aloulxt Akita acquired

He
td
Tigger150are Gars Amartizat
ERWMAKERMAX
I
Re acquired Aktakeouea CF.v on
Rights for Do Acqn
Akita
110 er
instep 4 INA

64511 11
 Steph Inge Summary
Fair value
Exceptions
ceaseffication Incas Recog
He
lease
Do not change
c u
Assets IAH's
classificatory M
M Def Tax IndBen liar
Earp
IndASIL Asia FULCTS
Pr Gb
PE
outflow X
Est r
He
Recogdena

Tease
Indemnification BPAwards Re acquired Asset crab
Asset Rights ofacquired
Discussed it
I
Record inpe Takeoved
Fair value
Sametreatas
crab Fame

Amendment Cont Asset Recog intra prohibited

12
 method
EI Noe Cmon Courteous Interest IF PsmannethadIIndfref
Akita acquired 757 of Markku ltd for 80 er Pc
INA of Mukku Itd 1003 100 er
Akita
OE
c
control
stake 1009
GW CBH Dor Ser

pelts
TO MCI 25
over
25er
y.takeovee
ftp
Prop share net 251 Does not
liab X
of netAssets y
PSMA
Eq SepHead

E
NCI

looerx257
Glu GBP PGA
StepG compare
Pc 75 80 er loot
80 er Nce 254 25er Asma with
PC 751
X loot
Ina G Ima Goon
Goof
Partial Grew 51
onutelongs to Akita Parent

13
Casey Assume in above eg Fu of MCI is 728 er No ofshares heldby
MCI X Fair value
per share

EE Steps
IMA Ale Da 100 or loot PC 757 80 er
Green Ale Da MCI 257.72bar
TORCH't 80N HIMA 1007.74001
5 Belong to Ak Parent
TO ME 251 2bar a
pay NI Gao

Record
awatanas
I few as per
per
E8Cr NCICPSNA NCI CFU

receCSummary
neck

FY PSMA
1stprey 2ndpref
H I
Full Crew PartialGtw
Paratnce Otey parent

14
Eg Prey held Inst
On 01004 X1 AK Itd purchased 15 stakein Mukku Itd for Élocada
On 01 04 X3 AK Itd purchased another Got stake for 75crores
IMA on 010413 7100 crores r
Fil of Provheld
Given Insist on DOAcqn
Glee GBP on ol ou.x3 E Her
Step
PC Gop 75 er 01 04 3 Preyheld Inst Fi on
Dateof
G Nce 251 25 er PSMA 1000 251 Acqn
you can also include Prey
7 Preyheld Inst 15 to 170 0104 13 needIenist in PC Ci e step3
INA 100M
IN 0104 113 Gain on Prey heldIniest
PactidGw 17 er Iter loaf 70 pillock
taxcases
ÉsIÉ

15
 III Card
step Id the acquirer

Comp't A

step
gifted
step I

Éan 59,00000
SharesCIL X 10 10,001000

Contingent Cows FY 3.00.001 72.00.000

ICAI takes this in step Alternatively you can directly

25 PreyheldImist Fron Doran consider this in step
qq.gg Glu GBP

INA 1007 60,09000

Stepy

Step nice Fair value 750000

Got
step 1d.sn
etqgff
fgy 72.00.000
Prey held.Imist251 20,001000
Pe 65 72L
Prey 257 201

752000 NCIC PSMA Ge Gorxlot

Nce fyC1oy.J
IMA Fx Coop 60.00.001
INA
Gol
Feel GW 39,50 000 partial
He
I
Parent aw
Parent NCIC Blf
naked 38,00000 150000 16
Illust 40 LDR

step Id the Acquirer Professional ltd

step Date of Acqn oiloulxz

Cto Prem 30
step PI Fayfsee Facevan
14L
1 Shares 2701 41 shares X 70 X 740 756 lakhs seePrem
21 42L
Igwe

TFF 728.93L
Payment Higherof aus
Gg
Or
351 2ftof Incap of E
excessprofit Contingentpay
mingy eup
Pre ext
Def 12m em
cows He 2ity PreCombSBPAueardfstx4nJ z2 g
30L
Excess
20122

loot
Step INA of Dynamic ctdC F.v an Doacqn

lick 1200
FÉF ex 350
Inst 100 35
150 150
300 1300
100 Coutliab Fx.f
230
DTA WMD 46.5

IMA 516 5 lakhs

17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
 Ind AS 27 Sepeaate Financial Statements
He

Parent Sts Invest in Subs Associate J Y IndAs

27
TOCIB

Applicabjatant
Co
A is the one which has either Investment in SubsInustinAsse
parent co
Investin JV

Subs Associate Jointventure

He Is
More than stake jointcontrol
got 207 507 of all partners venturers
stake 50 sot
eg
25 25 25 257
301 307 207 Lot

Accounting of Investments in Subs Asse J V As

per IndAS 27

Fairway computationof Fair value

cost As Ind AS 1097
per
FVTPL FuTo CE
Quest Pg 302
Same method on same category of Inst
All subs one category All Associates one category Algintures
Egg y
Ed 3 Sub Cost
Haram 4 subs I sub
Not allowed
Fy
Same class same model
i e either all 9 subs will be valued at cost All 4Subs value Fair value

2Subs s cost
AKI Allowed
I Associate pair name Diff class Diffmethod is allowed

x x x 54
 CFS
v u t t t t
IndAS Ind AS112
Ind As 103 Ind AS 27 IndAS110 IndASIII 28 y
He He
Business Sts CFS
joint Intistin Disclosure

Combination trend Cfs Associates

Parent Arrangements
a
Day cts Intstin Jointventure
Parent prepares
Parent prepares subAsseJu with subs
with Sub

55
 Indas110 CFS Accounting forSubsidiary
I t I
guy
1 Procedurefor 2 statement of 3 Adjustmentcist 9 Preparation of
Net Assets CFS
consolidation Balance sheet
Prelpost
Summary

I
5 Goodwill't 6 Step2nd 7 Disposal of 8 sub's 9 Eliminate
Impairment Prefshares of
Acquisition Subsidiary heldby Intra
MCI Group
Transactio

I
10 uniform Can NCI be 12 Repeating 13 AcqIisition in subs
Aging megan
date without consideration

to
intenaittholding 5 cons Pat 16 Control 17 Exemptionfrom
Evaluation Ces

56
 Ind As 110 CFS Cured
Glee is missing Always
H
procedure for consolidation
an'sed on Date ofAcqn

Calm of PC On Dateof Acqn As

Step per Ind AS 103

IMA On Dateof Acqn

Step
d u

Assets of Subs on Date of Acqn Fair value

liab of Subs on DateofAcqn Fair value

INA of Subs Fair value

Ind AS 103

tepI NCI FET

On Date of Acqn Ind As103
Fx method psmay

On Ur end As Ind AS 110 consolidated Bls arend

per

step Galaxy
PC Con DoAcqn
Prey held Inst on DateofAcqn

Ct NCICon Date ofAcqn

IN A Con Dateof Acan

Go on DateofAcqn XXX
xx
Impairment ifan
Gw Carend XXX Consolidated Bls ur end

Steps Consolidated Other Eq CFS urend other Eg 57

 Examples Saen
Inst Aunt 31 3 17 Date of Acqn

Egg Step P'C 757 25000

Step INA of Seed on Date of Acqn

Ind As 103 Indas ONI

He
Asset DOA ESC on DOA 18000
can
E Crab DOA
24000 470 Eon Donagh 476000
24000

Steps NCI CPSMA

Date of Acqn 6000 2.4000 257

6000
Ongred s

In this Ques DOA an end

Cons Bls 31.3.17

Steps Glee
PC 751 25000 I Assets

ME 1251 6000 EYE Caokt lol 50.000

INA Gout 129001 GW 7000

Glee 7000 Fintiffin subs

Doacan arena Eliminate in CFS
CA 30kt 4K 44000
O E
Stapf Corso Total 101000

Parent's o E 24000 É bnmP 50.000

24000
FEI 6000

life 21000
101000
58
 PC DOA 01.04.17
Egf Step on Date of Acqn 30,000

guyStep INA of seed on Date of Acqn

te
Ind AS 103 Ind AS118
Assets 22000 Jazz Esc on DateofAcqn 10000 Assuming No New
6000
EgShares were issued
liab
16000 the Equity PreAcqn Post Acqn 12m
01009.17 on04 17 to 313 18
Opro E 4000 2000
HI
DO A CO E v
Parent ICI
xp 801 Chot
1600 490
1
Total IMA ESC PreCo E steps Step36
10000 t 4000

14000

Step NCI
On Date of Acqn Colon17
Akooox2oy 2800
forth

On arend
2800 CFS
apn NCI yr end
PostAcqn profit
900
NCI's share 3200

steps amplaggylondoaan
30,000 DOAcan

I MCI 201 2800 DoAcqn

GINA 100 140007
Gw Doran 18800
Impairment
59
Gtw arend 18800
Step Cous.O.E
Parent O E 10,000
t PostAcqnProfit 1600
Parent's share
11600

Cons Bls on 313.18

I Assets

IIe 30000
Ghe Steph 18800

Instin Subs
CA 22600
70800

Eq liab

Esc Comp 30,000

O'E step 5 11600
NCI 3200
step 36

like 26000

70800

60
 Examiff pe 30.000
INA 1.10.17
Step on Doacqn

Esc of site on Doacan 10,000

other Equity pre post

1 10017 1010017 to 31 318

9000 2000 12m

Op on ou 17
7 TimeAdj 1000 1000

assertingaccrued 2000 6112

throughout the 1.10.17 5000 1000 Gm

yr He
INA
parent ME
807 207
800 200
KEEF preco E He

10,000 A 5K steps Steps

15000

Tally Aut 70000

Guv 18000

61
Example9
Step PC 80 7 30,000

Step INI
Esc on Date of Acqn of Std 10,000
OE Pre Post Gm
1010017 1010.17 to313.18

2000 12m
Opr R E 01.09.17 500
Assume apneas A OpnotherRege 0104 173500
1.4.17 4000 2000 12m

7 TimeAaj
1010017 5000
91 com

Iha X
Parga Ezo
Total IMA
800 200
IOK tsk
1st Steps step3b

Step HE
Onto Pema

ISK 201
3000

Yet
PostAcan 200
share 3200

62
 stay auto 3000 CondoAcqn
Nce
INA
a

Stepan
ÉÉ sooo
Parent's Other Reserves 5000
PostAgnshare
196
Cons Bls on 313.18
I Assets

30000

Gw 18000
Steph
Instin Subs
CA 22000
70,000

Eq liab

ET Esc
Comp 30000
O'E 5
step 10800
NCI
step 36 3200

like 26000

70,000
63
Example 5
Sitd Dividend Given of profits
Off e H Appropriation
Dix Exp PTO E Alc Do 1,000
TO CIB Are 1,000
10,000 x 107
Sita share y
Chuka
capital hai
in SFS
Parent Not
Income Income

800 Yoo

Inc Inter Co Std o E AddBack 1000 step Post

Transaction
parent a e Less 800 step
Eliminate
MCI arend less 200 step 30

64
 SEI PC 801 30,000

Step INA on Dateof Acqn 1 10.17

ESC on Dateof Aegn 10,000
O E of sled Pre Post
1010017 1010017 to 31.3.18 Gm

Open 1.9.17 4000 2000 12m

Nog Zindagi mein Ct DiypaidbySubs 1000
time Ady kepenile 10000 107
only one Adj can Ese
come i e Dividend
woo 3000
1 TimeAdj Gm 1500 1500

5500 1500
IMA p 807 NCI 201
1200 300
He
EITfreco.es steps steps
10000 5500
15500

step ME
On Date ofAcqn For Gw
PSMA 15500 207 3100

no
PostAcqn 300 a Far CFS Arend
Dix 6 3200
NCI'sshare

65
 steps Glue1GBP Step Couso.E
PCC80 30000 Parent OE 10,000
MECDOA 207 3100 PostAcan 1200

INA Coot EDNA'sshare

an
Iggy
Impairments
GwCurend 17600
Cons Bls
I Assets

30000

Gw Steph 17600

Instin Subs
CA 22000

69600

Eq liab

ET Esc
Comp 30000
O'E 5 10900
step
NCI 3200
step 36

lick 26000
69600

66
 Extra Eg
Pita acquired 100 Std on 3103 X2 for 650 crores
c

s Itd 313 2

cA Assets CA FI
100 Pann 100 120
O E 160 Land 150 170
Des 100 110
Lab FY Cee 50 SO
nice 240 250
OtherCurr Asset 100 120
500 500

Step INA on DOAcqu 31 3 X2

I
te te

Asper Ind AS103 Asper Ind AS 110

Assets Fv on DateofAcqn 570 ESC on 31 3 2 100

Oe Pre 313 2
Leg liabl F.x
43g 161
Total IMA 260
x
FY changes Donotgetconsidered
a
Mextpage

67
 INA as Ind As 110 considering Fv changes
per

Esc on DoAcqn 100

Other Eq Pre Post om
31 03 x2
160
H TA

160
4 FVAdjon DOAq
RevGain on Pain 20
f RevGain on land 20
Ct Das 10

R G on CA 20
El Rey loss on NCL IO

220 T
MA

TEETHE pre
100 220

320

F X Adj Effect are taken in Dae

ME cony
Impact should come in INA i Take in Pre
Fu all arise on DOAcqn Take Effect in
Betausein Pre we
take Bal till date ofacqn

68
Egf Pc 100 7 1002
step

Step IMA on Date of Acqn 1.10.17 of Sita

Esc on DoAcqn 20L

Other Equity Pre Post Gm
1010017 1010.1710313.18

6L 42 12m
Opn01.04.17
7 TimeAdjCam 21
TL
GI
1.10.17 22
1
FUAT
5L
A Rev Gain on land
In 21
Rev loss on IP 32
121 22
He
IMA
P 1007 MCCOY

III eco.es
a

20L t 122
32L

ME act
steeply
step step
pelloot 100L zoe
Nce Coy PostAcqn
I
IMA
321 321
Gw 61
69
 Cous BIS 313.18

Iit
Iawd 40430 is 75L
Pam 2044154 35L
Gw 68L

ca
Oct
SITE 172
Inventory
1952

Egads
Esc Only p 70L
O E 32L
Steps
NCI

lick d
TP 701 202 31 932
195L

70
Egg
Step PC toot 100L

step IMI
ESC 20L
GE Pre Post Gm
1010017 1010.17 to 31.3.18

Open 01 04 17 GL 42

7 T.A 2L 24
1 10117 T TL Gm

H Frady
HR G on land 5L
RG on IN 22
Rion TP 3D
Rev Gain on Pam 7.5L
Camp
ExcessDeprn Additional
X 62500
un 3 Deprn

1952 137500
IYA NCICOY
PCIOON
TOFALINA 137500 0
ESC PreO.E
202 19.52
395th

71
 and Revaluation Gain on Pam on 1 10 17

FY on 1110117 25,001000 Given

CA on 1 10 17 WM2 1750000

Fy Gain on 1 1017
750001

UMI C A on 1 10 17
15,001000 7151
CA on 31 3 18 AfterDeprnof 251
CA on 01.04 17 20,00 000 1001

less Gm Deprn 257 250000

201 912 25 7
C A on 01010.17 1750000

Add Deprn Gm PostPeriod 01.10.17 to 313.18

and
1010.17 Fair value 25100,000

Deprn for 1.10.17to 31.3.18

Gm 312500 Deprnon Fu shouldbe
252 6 12 257 charged

2500007
Deprn for 1.10.17 to 31.3.18
cell Yr actually charged
29 Excess Deprn 62500 pastcolumn
110 17 to
313.18 É
peprn rate DEBI un3rnethod
tofind
Ecefeprn

Life Asset 84 Directlyexcess

Dgpru

EYfrn.LIgoo0xlifex9mzm
72
 WWXH

Stef me
day

Step Few 1GBP step Coast

PCC100M cool Parent O E 302
Nce Cot postAca
e'Ina 100
7 3
51,500
4
9

Cons Bls 31 318

ITASSI
NI

IF 401 304 52 75.00.000

Pain 201 152 7 41,871500

4500
Gw
6050000
ca
Inventory IOL NILE 172
194 375
Egfciab
Eg
Esc Only p 70L
O E 3137500
Steps
NCI

lief k
Tip 701 202 31 932
194 37573
Illusal LDR

Step PC 60 7 8 00,000

Step INAanDoAcqnCl.lo.xD
Esc of Krishna Ltd 9.00.000
OE of Krishna Ltd Pre Post Gm
1010X1 1.10.11 to 3103X2

01004X1 60000 104000

RIE
other Rege or 04 1200000
260000 ng
Div Paid 40,000
41 107

1004X1 260000 144000

1 Time Adj Gm 72000 72000

144000 6
12

332000 72000
H FY Adj
RG on Land 200000
t In 30000
Reyloss an TP 20000

f R G on PENLAND 115000
Excess epmCams 50007

657000 67000
INA X 1404
RamGoy MCI
40200 26800
Total INA
ESC Pre CoE
400000 657000
1057000 74
conf Rey Gain on Pam on ol lo x1

FY on 1.10 x 4100,000
C A on lilo Can 285001
Rey Gain 115001

uI CAIntdnzi.oz.x 270000 907

0104 X1 300000 1007
less Gm Dep 150007
32 107 6112

f lo XI Joo

coM Excess Depm lo Xi to 3103 x2

on FX 20000 shouldbe charged

Deprn
92 107 6112

Depinanca 18
Freyr

75
 Step ME CHOI
On Date of Acqn i lol
For9W
PSMA 1057000 401 422800

0
4,9 22800
Post 26800
G Divfrom Subs
Iwf 40k X 401
16000
For ur end Cfs
433g

t.r.oo.ooo
stepccq.ly
MCI 40 7 922800 Doacan
ED IMA Cook 110570001
Glen on DoAcqn 165800

G GW Impairment C I
Glu trend 165800

step Cousar
O E 600000 714400
Ram 114400
PostAcqn 40200
G Divfrom Sub 401 601 240007
If
730600

76
 Consolidated Bls of Ram Hd on 31 0342

Assets

ÉAÉ FxAdj

Landa Bldg 31 3 62 21 860000

Plant Amant 4.84 2 71 860000
1.154156
adj Effept
Glee Steph 168800
Inst in Krishna lid
Current Assets
Inventory 240000 72800 320000 342800

thETaderelabies
119600 80000 199600
Cash 29000 16000 45000
2473200

Equity Uciab
Equity Esc Only Ran 10,001000
G E Steps 730600
Nce Step 3b 933600

TEinus
Bank old tdistake 160000
T P 9420047348001720000 149000
2473200

77
 94 Usr
0104.17
Step Peon DIA 801

Cash 10.00.000 Impact already

we 24 there is Sfs i no need
Shares 3 60,000 Sec Proust.GL
122 one togive effect in CFS

Def Cons 375000 No impact is SFS

51 0.75 Give effect in CFS
17 35,000
on 31 3 19
Total PC

Step INA on Date of Acqn 01 09 17

Esc an at on 17 of sitd 5.00.000
Other Equity Pre Post
1.4.17 1.4 1770313.19 Lyn

Op okay 17 125000 175000

Dix
H TA
AR Gan Plant 2.00.000
Excess Deprn 80000
Indy life sung postperiod

Laxman Remainslife
325000 95000
He

AItEC8ODFCIC20DTOEAlINA
ESCtPr O.E
IMA
19000
51 3.252 76000
He A
825000 Step Step3
78
 207
step MCI Fair value Method
Dateffenoa Given 380000

On Arend

Opr 380000
PostAcqn 19000
Div

GW Impairment 51600 347400

sty a 1GBP
PC 80 1735000
ME CLOY 380000 Fx method

EI INA 1007 825000

Full Gael on DOA 1.4.17 12 90,000 Ince steps
less GW Impairment 258000 cons one Alta AK Da 807206400
Gluon 41,914 1032000 MCI Ale Da 201 51600

step30 To Gav 258000

ICAI follows this

Corso other Equity
step
A Itd 14,09000
PostAcqn 76000
Dix
2064007
Impairment Gao
a Sec Prem 160000
of 78750
guy unwind Defcon
on 1350850
Can2
79
 Consolidated Bls of Alta on 31.3.19

IJ Assets
Depm
MI Fx Adiexcess
PPE 55415L 21680K 7120000
Sofa 1032000

Incest in Sita
CI
Inventories 650000
TR Gooooo
cash 280000
9652000

Egaliab not taken i we took

fgÉÉÉFsImpact was Tmpaintcts22ooo
Esc a
Equity
Steps oO.E 1350850
347900
NCI step 36

FYI sorta 3400000

er iz.szta.si 3IT
CAN 2
34 37so 2353750
9652000

wn ProuforDef.com
ur end cot.ca

II
31.3.18 3zzeooFut 912500
313.19 2500 91250 953750
Canso E Acta
J E 787so Yess
Plyp 78780
80
 cure Extra Codaect Approach Do notfollow in Exams
Partial aw CMI PSMA
Fau Gcw 129000071,8 4 2 880 Blf PC 17.35L
t NCI 201 1.65L 8.251 207
C7 Impairment 258000
GINA 1100 7 825L
Partial Gtw F
P NCI
1075000 215000
Ratio
Gao 215000 43000
Imp

key points of this Gto Summary

Face me Esc
Shares Mo Impact is Sts Take impactin cos Sec prem Como E
Stepford

a Bls a value afteray

Def Cans cos
unwinding
Lynunwinding cone
EEess

Glee Impairment full Glu Allocate Impairment to pance traction

stake

Alta would have Bornethe

Note If Guo was Partial then
only parent 1055

81
 PC 100L
Egg Steed

step Imt 1.10.17

ESC of sled 202
GE Pre Post
1010017 1010.17 to 31.3.18

600,000 400000
Qpr 104.17
Ctl Div
H TA 2,001000 2,09000
800000 200000
HII R G DTL
Ril Dra Yt 7 F v Adj
CHRG on land 5,001000
DTL on land 150000
CHRGon Inventory 200000

E DTLon Inventory 60000

Revloss on TP 300000
DTA on T P 90000
CH R Con Pana 750000
GDR on Pann 2250007
ExcessDeprn 62500
DR ReversdonExcess 18750

1605000 156250
He
IMA
P 1001 NCI Cot
TOEIEIIpre.co E
LOL 16.05L

3605000

82
 C ACEY T.BCB.MY Diff DNA PTL Boy

antff land
an 5h 1 a ath

Inns 229 0 21 Gok DTL

ConsBls Extant

Assets

TEEandcholtzorts
75100,000

lick
DRCRey
IIenet 15080 608569001 2280
07118750
326280

83
 PC 100L
Egg Step
Step IMA on Date of Acqn 110.17
Esc of sled 201 1 to.ly 1 10017103103.18
Other Eg of sitd Ere Post
Gl Gl
Opa

GI
H T A
G
H Fuad
R Cran land 5L
DTL on land 1 5

Inventory
This not
does
t Eton Inventory 22

existed E DM on Inventory Gok

Reversal of Raton Inn 24
Dtl Reversal on Inn 60k

settledon G Rea loss on TP 3D

Mend A Drt on T p 90k
Reversal of Revloss ont P 32
DTA Rev on TP

tf
I A PMI
Total IMA LOL 10.8L
I 3080000

BIS Extract

Inventory lol set 21 21 15L

Ia phrasal
902 84
Trade Payable FOL 1201 31 34
DR C mentor 150000
type

If Ques specifically mentions

that Inventory were sold Trade Payable were settled
then only Reverse Everything in Post

But if nothing is mentioned Always assume Inventory was

Not sold on trend Trade Payable were Not settled on
ur end
i e Do nothing in Post

85
 URP Unrealised Profit Transaction Between Parent Subs
Adj of
on

Intra Group Transaction

Sudmmary Rg 30.10 Edb

Pitd sold goods to s Itd Cost 5 lakhs sold forEGlate

EI on 01.10.21

Pita acquired sited on 01 04 211 Inventory is unsold an trend

Elimination EYES

RevereGales Are Da GL URP Eliminate

Caus Pll Ale Da IL
sales To Purchases All Ge
pyryminated Consell to Inventory

Caus Revenue Ale Da 62

IFE
TO Cavs Ple All 5L

To Inventory Ale IL

86
 URP elimination in CFS
I
P soldgoods to s s sold
goods to P
Towne upstream
parent earned profit
eliminate fromparent's reserves eliminateÉihÉÉÉiI
cows'ÉiÉ from subs reserves
cats pliccousoefsteps xx

to Inventory
Eg postless

to Inventory XX

Draft
step INI
ESC of Stel
G E of Slid Pre Post

apn xx xx

Did
I TA
7 FxAdj
urp upstream xx
He

Always Post
why
As URP isonly
eliminated when
date of Transaction
is after date ofacqn

URP DTimpact tax 301 Alc's urp elimination MOURPelimination

Tay
Item C'A TB Diff DT 307
6L IL DTA DTA
Inventory 5L 30K
TOPIC
Downstream upstream
Hr
Drain steps aft in step2
High Jidhar URP eliminate hua hai udhar Draayega 87
Illus 65 LDR Ein lakhs

step PC 6000

Step IMI oforange on 31.03 2 DOA

ESC 72000
OE Pre Post
3103 2

Balon 31037122300
H TA

CHR.Én
RG on In
ÉÉ 300
100

2700
He

IMA
Total IMA 4700

step nice Cot

step
Agco 6000
GINA 4700

Glee 1300

Step Couso.E
Parent O E 10200

Cous Bls 111 Tally 15650

88
Illia
Step Pe 75 1 4500

step IMI
Esc of Orange Ltd 2000
OE Pre Post
3103 2

Balon 31037122300
H TA
H Frady
CHR Gan PPE 300
RG on In 100

2700
He

IMA
Total IMA 4700

NCI 9257
Step
OnDay CPSMA
4700 257 4175

Went 1175

Stl Step Cause

Ffg 4500 Parent OE 10200
MCI 925 1175
t INA 100 7 4700

am
CamBIS HI 16825 89
Illus 67 42

step PcC75 4500

Step INA of Date of Acan

orange on
ESC on DOA 2000
other Pre Post 12m
Eq
31 03 X2 1.6 21031 3 3

2300 550
He
C4.12m profit
G Div
7 TA
H
FYAL
copy from f RG an PPE 300
Previous ExcessDepm is
gadft300 420
CH R G an Inn 100

Rev of Regan Inn Inn sold on trend too

i Reversed

2700 435
He

Total Inn Blue

ESC PreCo E Ins
326 25 108.75
2000 2700 4700
757 25

90
 step NCE
DOA 373 x2
4700 251 1175 CPSMA

Offend 1175
108
Post 71 1283.75

ME
FLEET nooo
MCI 257 1175 PSMA
GINA 1001 47007

Partial Gtw 975

G Glo Partial
Inf Impairments was sorry p Blue Heaven
ally gene
Guan 313 3
JEcousoEstqjsOlessTOGtw98

step causo.RareutO.E
11000
Post 326.25
GleeImpairment 98

11228.21

Caus Bls 18032

Tally

91
 G Step Acquisition
to 1
1st case control
obtained 2ndcase
a 6steps
NCI Boy
4
oilou X1 1st stake acquire EndAs 103 alloy x1 toi stake acquire
011041 3 601 stake acquire already 011041 3 stake acquire
discussed

u you follow all 6steps

will
compute crew again No
6steps Aldingfollow on oil041 3 Dantean

Glue computation
pe Coat Me 301 I 6
PreahadInestGs3 evonDoacgnol.ou.xz 15M 3 Proportional

f NCI 257
100M
C INA EFFSDirectly
4h0 T NCI a pazoof proportionately

Gain Cts PI ConsO E Blf

loss pillock
TOCIB
gg
step to canso E Blf

CFS prepare
through SFS

SIL Inst 1st

TOCCB

NCI
CE
CausO E Blf
TOCK Imes 151 eliminate
To cons O E Bff

92
 Disposal of shares in Subsidiary
I
1stcase without loss of control
2ndcase with loss of control
704 Stake 307 NCI
801 stake
eg 207 nice
lot stake sale NCI t by lot
sold Cat Stake
Got stake 407 NCI
lot Stake Retained

II CFI Directly EEE Directly

C1 B AK Dd Bank Ale Da tot Alc Dd

E CBIf Da NCEAle Da 0207 Alc Dr Derecog
Caus o
GBRAU DA
TO NCI AK Receg s Imist Retained Da C1017 II
PSHA
To Corso ECBIf Loss on Disposal PIC Dd Blf
TOINA of Subs 1001 DeReeg
To Glen
To Profit an Diep Pll BH

the above entry is closing entryof

CFS
cue Da Inrest Retained so that
Both Da side Ca side Becomes
comparable Ci e 1007 so that
we can find correct Pll on Disposal

93
Illa 34 LDR

DEE in XYZ ltd SFS

213 Next 95 Bank ACC Do 24000

whtenever it TO Dividend Inc 24000
is read 807
30000

207
id ME Steps
On Doacqn Fair value Method got 140000
35000 207 35000

On arend 31.031
open 35000
PostAcqn 4000 204 201
profit

GDivided
491 39000

JE on DOAN
IMA Are Da C Fx 150000
G W Ale Da 25000
TO NCI CLOT DOA 35000
TO PC 80 140000

94
É
É DOA ol 04 x

pecan 140000

Step It
Esc of S 1 00,000
One of S Pre Post 12m
109 XI liu XI to 3103 x2

1.4 1 50000 20000

Opr
H FA He

INA X
p 901 MCI 10
18000 2000
TOHINA IL 50K
I 1.5L

step ME
On DOA CPSMA
1.51 107 15000

onYphisooo
4 Post 2001 17000

stepqqg.FI steps
pa w e 200000
Nce 10
15000 DOA Post
HINA 1001 1500007 g
Groot
95
Case2
PC 85 104000
Step

step IMI
ESC I l

O E Pre Post
30000 Goooo loss

Ema A
p NCI
Total INA 130000 8520 15007

8
qI so

51am
Postage 115001 18000

step
plight conooo

Nice 9157 19500

IN A

step
CgqIo.e 200000
G PostAcqn loss 8500

191501
96
 Illus 46

Stake Got
Acquire Met Reduce
41J
Nice hot 4000
Reduce
0000 Proportionately

EE CI
u

NCE Ale Da 2000

Caus O E Alc Dor 2000

TO CIB ACC 4000

Illust
Nce 301 6600
Reducebyt
note
showing NCI
Bae my
aIÉi Do 2200 L
Cours o EAL Da 400

TO CIB 2600

cow should n Be
adjusted

97
 Illus 48 LDR

OEI JE
SE Inst 4133232 CE NCI AIC Da 30
TO caus o EAL Da 2
TO CHIN est 32

A B CFS
Fay guy 1000 zoo 1128

98
 Illus 49 Disposal without loss of control Mct win increase

CE
Bank Alc Dd 9 00,000

TO Cous O E BH 180000
TO MCI Reeg 720000

FI sasmdening
mreleaf
for sancemataw
He
pisposal 182
questions I 161 901
407 6.4L
NCI CFX 7 22
Nce PSMA
ist pref

IIICBeforeDisp

Inst 1007 10L

Sold hot Iast

CIB Ale Da 9 00,000

TO Inst 401 4,09000C caray's tent prop

To profiton sale PLC 500,000

557
8
Ofa In Disposal
Sfs logic completely Diff from Cfs
99
 Disp without loss of control

C 1B AK Dd 500

to Caus O E 50
TO NCI 30 Recog 450

1stpref
FY
sub CIMA Glee
1380 200
1500 307

100
 Illust 53 LDR
Parent NCE
Shares

0000 shares 30,000 00

Got 5 8 to ME
21.4
78000 shares 30,000 95000 2012
40 Got
loss of
3 4
control
Carethoutary
1
0
6 100

disposal by
parent

EE Cincts for loss of control

Bank Ale De IIA52 coz
4 907 NCICPSNA
NUE Ale Da 180000 au
is partial
Fairy awe Inst RetainedAlena 360000
mention
in dues

300 TO INA MC 450000

360000 TO GWAR 20000
He ÉÉÉÉ
ICAI TO Profitan PLLAle 70000
4 52 2011 407 Disposal
188000

101
 Illus 54

CFL
and
Bank AK Da 80 2.00.000 Ima proportionate
MtCPSMA
MCI
Nce Ale Da 207 95000 225000 201 Daytime
NCI on Date
Imest Ret Da Cot of Disposal
TO IMA 61001 225000 Dateof Disposal value
TO Grew 12000
TO Profit on 8000
Disposal

SE ele Al Da 200000

TO YtIgtioc.TOInnestC
Profit
c.A
PIC
160000
40000

Illus 55 LDR

Is
Bank Ale Da 601 6750000
II NCEACC Da Cot our stake was 1001
then
present Inst RetainedDa 401 4500000
same TO Inert Alc 80,001000
fable
form To Grew 10,001000
Hint to Profit on Sale PIC
Remove 22.50.000
TO Da Alis

stg UB Ale 6750000

FIoI
c.A 30.00.000 SOLXGOD
9Est.TOImestC601
TO Profiton Sale PIL 37,59000
102
Illus 68 USR

CFSJE Cota not asked

Bank Ale Da 100 7 3000

NCE Ale Da Cot
Imist Ret Da Kon

TO INA 2380
TO GO 180
TO Profit 440

Consolidated Bls latterDisposal

ITAssets
Mtw 380 180 200

3240 1340 1900

Bldg
CI
Inventory 100
TR 800
Cath 3100 1000 3000 5700
8200
EETES 1600
O E 4260 440 4700

IF 2700 aced 1800

103
 illus UK
Bank Alc Dd 90 1000

É NCE Ale Da
Inst Retained Da Got 128 Fair value fumy
IMLossCALC Da 152
and Surf
TO IMA subs Ca
1190

ÉgICAI
1190 90
TO Glee 1280
go
907Insist sale 1000
lot Inst 111.11

Consolidated Bls CatterDisposal

ITAssets
tw 100
950
Bldg
Incest cot 128
CI
Inventory 50
TR 400
Caen 1550 500 1000 2050
3678

ÉÉ Esc 800
O E 2130 1523 1978

900
3678

104
 Chain Holding Indirect stalkedthrough direct subs

We
0 80 70
Akita s Mukku Itd Danish Itd
He
Direct Indirect Sub
Subs for Akita

He

AK t Mukku t Danish
patent sib Sub

Effective stake Indirect

Akita athakka 807 Aletta Datuk 801 701 567
NCI 20 s NCI 449

90 60
Egle AK s Mekka s Danish

Effective Stake
Ak Malaka out Ak Danish 907 607 say
Nce no Nce 967

80 60
Egg Ale a Mekka Danish

s glitter
7 IT
stake is less than
Ale thukku 807 Ak DanishCoot xan art
is indirect control
NCI 527
as Are controls
Mekka 1007 4
Mekka controls 105
Danish 1001
 80 60
Ad Maku
Eg4 Dayish

Iifedistake

All Thakkar 801 AK Danish 804 601

Mce 201 487 107 581
Lance
421

iii Date of Effective Control

30.09.70

Akita Mukku I
Egg Itd
Danish
Hd
Oleou X1

Point of view
Akita Mekka CFS Begins 01.04 x

Akita Danish CFS Begins Of on X1

Egs
Ak Ctd s Mekka Danish
tu XI ltd q.io

AK Markku Cts Begins 01.09 x

Ak Danish s cts Begins 1.100 1

106
 LDR
Illus 52
Effective stake
P S 807 P SS 807 751 604
Mce Lay Net hot

Date of Effective Control

P S 301097 1
p Ss 301091 1

Pe d Ssd
step
za 224 aime
From the pointof view of p

step IMI
D Sita
Esc of sled 900
O E of Sita Pre Post
30.09 X Gm

Open01.04 1 80 20
20 30
100 To
7 TimeAdj Gm 25 125

725 If
He
IMA PLOT Ikot
Total INA 20 5
400 125
525

107
 ii Ssitd
ESC 320

O E Post
38.9 x Gm

60 20
Opnotoux
30 30
T To
4 tracan
LEE YI
E URPeliminatnlam
He
If
Total IMA
320 115
IMA
Pg Icecaoy
435 13.8 9.2

MEI URI Ss s

cost profit sales

100 25 125
21 102
Ss eliminate

step Not Ltd Ssity

QIIIEI.ee
No ofshares held by NCI 8L shares 12 82 shares
322 shares goy
Épersnare Cholshares
X 20
Mktprice Face value 10 710
NCI on DOAeqn 80L 1282

108
 Nce Conurend s Ss
80 128
Opr
PostAcqn 5 9.22

G NCI's share of Inst in Ss 564

Can 2

Net Con Yr end 292 137.22

stepy Glee 1GBP

site ssitd
PC 340 224
NCI ConDoacqn 80L 128L
IMA 525L 435L
GBP Cap These 1052 831
EE
SEE Causa E

Parent O E 1860 160 340

PostAcqn in S 20

PostAcqn in SS 13.8
GBP capRese 2 1882

561 82

109
 2 S s PC for Inst in SSitel
He
280Lakhs

Parent Ice
80 20
2801 801 2804 201
2224 L E 56 L

PC from P's fence Urena less

point of
view
Émony
i
Redye

Expl Cora we are

computing everything from the point of view of
Pltd Out of total Inst of 280 Lakhs made by sited in Ssitd
P ltd's money used is only 807 because P's stake in S is 801

Remaining money used is of NCI of Sita

280 80 229 pc P's pointof view

280 207 56 deductfrom S NCI

110
 Consolidated Bal Sheet of Pita as at 311031 2

MEEEE
320 360 300 980

GW
CI
IA Inventory 220 70 501 72 338
FI
TR 580

Bias Renable 72 30 ÉÉzy 2

Cash 308
2208

Erlich

ÉI includes GBP
600
g E steps 561.8
NCE Step3D 29 137 2 166.2

E
TP Interco 880

Bills Payable 70 30 30 0

2208

111
05 CMP Rtp Eas 09
Lx a MX 887 4 MX 857 601 5 y
Nce 1st nice 997

Date of Effective Control

Lx Max Lx MX
Is control date
01004 20 N
30.09.20
Int No TimeAdj He

IMA TimeAdj 6m

Bf Of ME

112
 Illus HO WR
Telecom parent
Infra Subs

I 1
aloalxo alloy1 1
sold Telecom
Infra Purchase Intra
E 11.00.000
Bldg E 10.25.000 t
CA 10,00 000
Life 214ns
life our
Res Value 800,000
Res Value 350000

IEE Aiatel Infra Subsidiary

In'dividual Fin stat

01 04 XO Asset PPE Alc Dd 1025000

TOCLB 1025000

311031 1
Depm All Da 25000
Tappe Bldg 28000
1025000 gooooo
214ns

31 31 1 C A 10.00.000

Intra sold Bldg to tee

a
a guy CIB Alc Da 11.00.000
TO PPE Bldg Ale 10,00000 C c.A

TO Profit on Sale 1 00,000

PLL

113
 I Airtel Telecom SFS J E
costfor Telecom

11091 1 pre Bldg peep

TO CLB 11100,000

311031 2 Depth Ale Da 37500

TO PPE 37500
11,00 0004350000
204s

III Airtel telecom CFS

CES CA of PPE on I U X
011041 1 URP elimination PPE 11L

Cang PIL ACC Dd 1100,000 E ORP LI

010 104
TO PPE 1,001000 41

IMA MI INCE
310312 ppe All Da 5000 Xl X2 Deprn
to be charged
TODeprnReversal Caus PID 5000 32500
H
X1 x2 Deporn 37500
actuallycharged
turnSFS
Reversethe excess charged 5000
excess charged

114
10 Uniform Accounting policies

Ces prepare Parent a subs item

gyd
ggh.gg

Inventory Parent Fito weighted Cfs Inventory uniform

Sugg
Sts method Leo
Matane
eg Caa eg car

Inventor Parent Flo Sub man cess IngenEylamidMIX

8 SFS
if man SES
Oil
Diff methods isallowed
eg cars g in CFS as Inventory is
of Diff Nature

PPE sun Sub PPE cts uniformity

Parent Dye DEI way
Required
He

No
Deprn is Not a Ace Policy It is an

accounting estimate

115
11 Can MCI be negative

EI Post
Step IMI pre
Toc loss

Agmep 807 NC 207

PC80 7 McIlroy
eeConDoacgn 12
loft

step Nat
On Doacqn u

o
PostAcan 1.64 Cook
loss

YES nice can be negative

Illust Computation of Gw
ESC PreO E
PC 701 10,00 000
GI NCI 30 324000 PSMA 30 X 1080000

GINA 1001 1080000

Glee 244000
On DoAcan

Iot Gleeon Each arend will be same as there is NoImpairment

116
 Date ur PostAcan profit loss NCI's share Parent's share
of subs 307 707

alloy x1 324000
75000 175000
Xi X2 loss 250000
NCI on 311031 2 249000
X2 x3 loss 4.00.000 120000 280000

Melon 311031 3 129000

150000 350000
X3 141055 gooooo
21000 Nce can be Casper Indasno
Nctc on 31 031 4
loss 120000 36000 84000
XU X5
MCI on 311031 5 57000
XS XG Profit 50000 15000 35000

NCE on 31 031 6 92000

X6 Xt Profit 1,001000 30000 70000

Neon 31 31 7 12000
45000 105000
X7 48 Profit 150000
Neon 31 31 8 33000

117
13 Acquisition of control in subsidiaries without consideration
He

MetAssetacquire x
Ed Control Is Stake acquire X
contract

y
t t contract
intent 211 13 4any stake
without buying
subs NCI stake
foot
pig in acquired Éated by contract alone

CFS Patent Inn of Ak Itd Con Doa lock PC O NCI CPSMA

Step PC o

Ina 1007 Aiding in Books of parent finaultd

Subs
Pc O
tf
Nce 1001 In a lot
step
Glee 1GBP Step Nce Pema 1007 10 er

step Guan

Is
NCI lo er

Gao

118
 I
Fyisposal with loss of control Concept 7D

É Bank All Do 8.00.000 250000 550000

NCI Alc Da 180000
GBP Alc Dd O

TO INA 900000
idgaf TO Gw 0

TO ProfitonDisp 80000

119
16 Control Evaluation CALL 3 meet

I I I
Pawed Exposure Rightsto Ability to use the pawed
variable Returns to affect the amountof

returns

Powe
fi H
Through Majority Without MajorityVoting
VotingRights Rights
more than 507

te te I
r
guy
Contractual Potential Size of Investor's Rightfromany
voting votingRignesrelative contractual
agreement
Rights to other shareholders agreement
with other Relitel caltrol by
shareholders eg contract
AK Taut LolGot Point 13
stake Others'll
not more than 19 individually
theybe AK with any other Stl
might have
control as he
has majorstake
in comparison to
other SH

120
 Rights
v u v

Yotings Rightto assign remove appoint Other Rights

He
Rights KidP's Bele

Mru r Power
Power over all activities eg
1 AlesBechara
Substantive Rights There is Power
tagprotect
Protective Rights there is No Rowed Hence No control

Hete there is No Power Only I ar 2 activities to

protectthemselves are in control
Leg All Itd took loan
He
from Dena Bank
I
1000 er
Anyother loan to be taken by Ak ltd will have to be approved ByDenaBand
In
Here dena bank has
protectiverights

2 Variable Returns
notfixed have the potential to vary can be positiveor negative

3 Link Between Power Return

He
to use the to affect the amount of Return
Ability power
other Imp points
Also determine whether the one who is exercising the pawed is acting as
as an
agent or
princip
If is exercising the pawed on behalf of princip then it will be concluded
agent
that the princip has the power not the agent
121
 Beech wad a Parent

Exemption from egg one InvestEntity MutualFund

80 707
Eg AkHel sanduakuid a Danish

Exempt froth Cfs with Danish

if below 4 conditions aae met

A parent is NOT required to present cos if it meets Ad of the Below

4 conditions
It is a wholly partially owned subsidiary of another entity 4 its
owners Do not object to the co Not presenting CFS
Not a Publictally traded co
Neither filled nor is in the process of listing in India or outsideIndia

Its ultimate parent produces CFS for public use

2 Investment Entity Leg Mutual Funds No need to prepare CFS

He

1 Obtains funds from Investors

Def of Incest Entity
Note All 3 conditions are
2 HoldsInvestment
only for capAppreciationa
Inst Income leg Dix Jut
3 Measure all of its Inst in SFS at
FVTPL gompulson
to be met

A H 75 stake with
Egg AkAel Betel 60 7
Iast entity Cito 65
Dita aoi
CI's
Exempt If
Inst FY through Pll 122
 Inst Entity No need to prepare Cfs 2 Exception
He
oFu this means in these 2
cases CFS is to be
prepared
1st Exception
The Inst Entity shall consolidate all the entities which provides
services similar to Inst Entity
Altd 75 3 Textile co

Eg Akita Bltd 651 mob co at

a f s c ltd 60 camera co
D ltd 58 Inust Entity

Akil'd will have to

prepare CFS with Died

2nd exception
t.atjtttiaIagiite ignn ig gagging'iesmatiteau
legal
consultancy
a Co d
a B 657 NonInvestment
Td
Éed
Ethan y eccoot
Entities

AK Hd 577
p
k u

MEET He
Exemptfogy

mauled will
prepare CFS with
Alc Itd A Ctd Bite t C ltd t D Itd
123
 Indas ill Joint
Arrangements
H te te te
4 Accounting for
1 Definition 2 Joint control 3 Types ofJoint
Joint operation
Aadangement
c
Joint Joint
Operation venture

hormoneparties
Eg of gA s Joint control unanimous Dec Mak's
Contractual agreement

A B C D conclusion
Resolution approve
go my unanimous
favour say goy Deeraakg T
Min 851 in
JointArranger

A B C D Unanimous
Resolution approve
Dee maker
257 251 257 251
He
Mental.in favour to'Itrangement

Resolutionapprove B Unanimous
Dee Making A
Min 701 in favour 301 207 15 357
J A X
He

Any 3 parties
can approved
pass the resolution

124
Unanimous Dec Mala's Exception

leg 4parties
If the contract soft that out of a panties 3 parties can
getthe resolution
approved if the combination of parties are specified then there will be
a J A btw those 3 parties

A B C D
Resolution approve 207
EI He
307 207 307
Minimum757 Agree
Bath CH

Stet
A B
also
agree
D should
AI
misisat
But oney Btw A B E D

Types of Joint Arrangement

to A
Joint operation J o Joint venture
He
3 Defa AmeD any I Defn
He
1 J A is not structured IA is stouectored through a

a
through Sep legal separate legal entity parties
It will beJ o egl haverights in Net Assets
entity
OR
2 Not individual Assets
2 JA is structured through a liabilities
Sep legal entity each party Hegg
have rights to individual assets Extra been in J Y

K liabilities eg 2 Sep Entity

He
Not
output own only
for
PartyBut
J A is stonectured through a Sep legal entity also for3rdparty
wholeoutput from Sep legalentity is only
forparties to the adaangement a not for outside3rdparty 125
4
Egl
ft Kelashitd 9
IH
Procurement
He
Construct of
Construction
contract
of Bldg of Highway
Raw cheap labour
Mate
for construction g

they decided to come together forma J A AK 2507 kelash sot

then apply for this Govt contract But they did not forma
New co

T.fnpointnco.D.EE
Akita Kelashitel
a
Row Construction
rate a
procurement cheap labour

Sep legal entity Akailu Hd

ppÉÉ dozer kelash

loan taken_ Inventory Raw material Ak

creditors Cash
Bal.ITaasn

meet Asset Assets E Ciab

EI Same as Egh But the parties have rights directly in Net Assets
Not individual asset a Ciab
126
 HP Petrol Pump
Egg ICAI office
Indian Oil Petrol Pump

Gujrat
up a to JA

Sep legal entity

HPIO Hel

Common
Pipeline
Transportation
for petrol Pipe
of It is only for
consumption of
parties

HPPetro Indian oil

Pump petrol
pump

a
Accounting
80
He
It
Mocks Applicable to

Eater
party will record IS If
their share of Asset Ciam Ind AS 28

Income Exp in Ealitytnethe

He

Ind As ill Inestin Associal

He
cast Fx j
Proportionate Consolidation

127
70 peen Ing Del Indas ill
JY
I Alling Indy SFS 27
Ses
Adding
Tees 2g
CX

128
Illus 25 LDR
25 0 Def Alding poop consolidation
Ind AS111 J A
gy Def
Co Treatment Incorrect

CorrectTreatment Y ended 311031183

PPE cost on 30109117 40 er Alpha Gamma

501 507
t Gm fat Cap IndAS23 O Ser
1 4 17 to 30109117

Cloerx 107 6 12
Alpha sat
30 09 17 Cost 40 Ser
Gamma sot
G Gm Deprn 1101250
Oser
xgamy
a 31 3118 C A 39 4875

A 50
Gm Deprn 1.0125g I G got
A sot
Remaining 6m Jut O sour
G sot
s p

so
Maintenance costCMD alarm IAG 507

In exam present the above in statement form

GF

129
 Illus 2314212
sale z A 661
A go go
Imparn 401
Before sale
Actd
100

Effective
After sale I
so
on Egg
Asset II stake AI Got

Effective
JE Cin the Books of Alta
Salehot

CIBAK Do 32 80 901
PILAIC Pa Blf
To Asset All 40 100 401
C c.A

Ingy A Ia Jo JoToth p

BeforePurchase
Jo

I Effective raven hot

E

www.ngggy
EE In the Books of Alta Hint illus 23424
sale
A Jo
Asset PPE AIDS 32 407
380 Purchase
To Bank All 32 CMO Gain loss on purchase Lt E only to theextent
of otherpartyshare 130
not
 IndAs 28 Instin Associates T.V
y
Equityhd
1 Definition 2 Significant 3 Accounting for 4
influence Investmentin Method
Associate UJ.ve
Application
c of
its Equity
making
ÉÉÉas27 Indas 28 name

I
5 Impairment a Discontinuing 7 Exemptions from
losses Equity Applying Equity
Method Method

131
 Ind AS 28 Investment in Associates a
Jointventure

201 I 50
Significant
Influence

AK Itd 30 Onkaa Hd
Ef
u
Parent Associate

SFS Ind AS 27 s das

Investment in Assoc Jv xx Inst in Asselov XX

Eqiity
Cost Fair
m method

conatiFTquity Method
It is a measurement technique to
measure Inst in Asse TV in CFS

132
EI On Ol on x1 Ak Itd acquired 251 stake in Mukku ltd for 100 lakhs

On that date the Book value of Mulcku's INA was 200 lakhs Fil of
Markku's IMA was E 250 lakhs
The diff Btw By a FY of MukKu's IMA was due to a PPEwhose

remaining useful life

is syrs on a lo ou Xl

During the year X1 x2 Mukku Itd eadned a profit of 50 lakhs Also

apart from above Mukku Itd had earned a profit of 30lakhs in OCI

for the year X1 X2

th
On 01007 1 All Hd had soldgoods costing 10 lakhs to Mukku Itd for 15lakhs
Show accounting of Inst in Associate in the Books of parent CFS as
per
Equity Method find As28
jj

Mukha ltd Ale Da 100L

SI Parent Ind As 27 Inst in
TOCIB All 100L

BIS 0109X1
cost
xx Fair value
stigma

133
 CFS of parent Akita CFS Not prepared through Sts

Day or ou x1 computeGlue GBP

1 Recognised Ie
xx
Only Ingstigppassoe
Disclosed xx

Computation of aw GBP
PC 25 2 100 lakhs

IMA 25 62 5 lakhs 250Larus x 25

F
que 37.5 lakhs 2 Only Disclose
InexamsgiveJE
whenasked
Equity method Inst in Associate In cis pony
Date particulars E JE Crs

01009X1 Invest in Mekka Ltd 25 100Lakhs Into4131900

Guv 37.5 is included in INSET
Adan excess reprn x 251 12.51am Going s
songs
Dd
Post Acqn Paofit in Assoc 504 251 12.5 lakhs trust
TO CousPIL

Ct PostAcqn profit in Assoc Oct 302 251 7 5lakhs InfostathfI

Md Dividend from Associate lol x 25 2 5lakhs
foggy
G URP elimination P Down
udp
51 251 1.25 lakhs toInist
Inst in Asse 113.75 lakhs
311031 2 as
perEq method

17kCImistinrnk u me
sayin yo
25.7s100CProfit2socx2s7 Sale so
qif gg
1825 Pay
profitalised
as Baloreduces 761 9101250
134
IIc.gg t
oo

C INA of GreenHd 1000007 42 25 7

Assoc

Glee 25000 Only Disclose

Computation of closing Bal on Inst As per Equity Method

Invest on Day I cost 125000

including Guv 250007

ExcessDeprn 1 00.000 x 25 1250

21
Ctl Post Acqn profit Pll 40000 251 10000

Coo 10000 251

2501
Closing Bal of Iast 1362 50

per Equity Method

as

135
Illus 18 LDR

computation of Crew
Pe 354 9750000
GINA 12
4 only
35 1,1909000 351

disclose

of Inst
per Equity method
value as

Invest in V42 Hel 4750000

including 91 Guo
Excess Deprn 70000
E 201 351
4
PostAcqn Profit PLL 81 351 280000

G Dix Dist by 442 Itd 122 357 420000

Post Acqn Profit ace 21 351 70000

Closing Beel of Inst in v42 Itd

96,101000

136
 Ques 3 MTP Rtp

notasked
Camp of qt
PC 357 300000
IMA of Digital 357 12275007 680000 354
Gw 72500

of Imest in
computation of Dig Itd per Eg method
value as

Inst in
Dig it cost 300000
including Grew 725007
Excess Deprn ooooo x1 x 351
14375

PostAcqn 35000
profit PID 100000 351

t Dix from Assoc 11000 351 3850

loss i deduct
847 Post Acqn loss ok 15000 351 52g
value of Imest in Digital 321525
as
per Eq Method
the end of the yr

137
 Ques I LDR

Investment in Asse Mean Hd 3.00.00.000

ICAI 5833
WIG URPelimination 14286 357 5000
He
Post Acqn loss Icrx 357 35.00.000 wrong

Inst Casper Eg 369,95000

Method
sold
attend someone smeo

Cast3soooo3gooodostCsumeaus.p
310000 cdstfortneau

Cost a profit Sales

300000 t 50000 350000
He
costtonneau is
14286 1,00 ooo sap of this transaction
Ippon
unsold
goods
x 357 stake

5000

Imest in Associate Mean 3,0000,000

C URP same as above 5000

PostAcqn profit 1 Ser x 357 52,50000

G Div from Asse 752 357 26,250007

Inst Yr end Eg Method 3,2620,000

138
 Loss Making Associates Illust 15

7
Ef Ak Itd Malaka Assoc Duringthe year
go pe
Parent Mind
afoul loss X1 x2 2506km
150lakhs
AK Ravert Imistin Mukku Itd 1002 loss x2 x2

G PostAcqn loss 2501 307 752 Profit 43 114 lookers

25L
PostAcqn loss 150 301 452 2x
this Inst cannot Imest I
be ve

Unrecognised loss 20 lakhs

20 anrecag.mg
Inest O Adj
CH Post Acqn Profit 100 301 301102 pay 10 Bal Recog

Value of Insist 101

30t
Egf A s Mukkultd

Akita Inst in eg.sn

resoTiTIiitd sot

d Iast in Pref shares of Malakand

zoya's Jinan
Inestin pref m
Imest in Debentures of mukkultd.IE
If Tustin Deb 50L

Inc Y Mukkullosset 4002

301 139
120Lakhs
Order of Allocation ofloss

Eq
Pref
Debenture

140
 Illus 15 CAR
Parent Books
Ind As 28
Dad Inst in Eq Shares s 10.06.000
Profshares 5,001000 Ind As109CFI
long term loan 3,00 ooo

Bal latter
at Casper Indas109 Isha If pin Cbs Bal

fIneq shares lol

Ind As log
not 104

prey 5L SOK 4.52 9.54 0

Long term loan 3L 5014 2.5L 12

Adjas per Balcatter Ind 28 Ces Bal

Mtk IndAs1
q.IndAs1097shareofPlL.Eq
open

o o

50000 9
Pref o 50K Sok esse o

1 00,000 0
long term loan IL
Total 1089 50000

1500007.50008 p g loss
Unrecognised loss Car27 2x 1,00000 c at loss unallocated

Inst in Pref shares cannot be ve So to the extent of 50000 loss

borne by Prefin Url It will be reversed in Year 2

141
 109 Bal after109 share of Pll els
Open
Adj
3
Indas28
o

IL L
Pref IL o

LT L SOK SOK IOK O

1500003
Hoss

C Y loss is zero Buffy unallocated losses were 150000 which has been

adjusted in 43

Shareof Pll ca Bal

109 BenCarter1097 Ind AS 28
Of Adj

It
20000063117 200000
o
Eg
0 SOK SOK 500000 CAMP 550000

LT L O 3,090006mi 300000
10,001000

loss Borne
of By
42 923 Total loss Borne

c.pe Case y 014 32

SOK 5
Pref 4 51 IL

Bae ftercog Shareef PIL CS Bal

Opm Adj 1097
CIndas28
22 12L
Eg 2L LOL
30k 8h Full Eq as we h
pre s.se
settled pret ul ti
q 32 32 Balin P g Ura 32

142
 Ehret
Isseforne

Pref Pete
Pref
athane
profit to the extent
of loss Borne Previously
Ltt Eq

143
 Downstream transactions between the its
Upstream entity
associate TY

u
Method
Equity He
Reduce value of Imest to the extent of own share on unrealisedprofit
CORP

Subject to Inventory ofs on yrend

He

Illus 13 LDR
sold to
Scenario A N an Upstream
associate parent
He
ProfitEarned
1L
Incest in Mitel Assoc xx

Associate Earned Profit of 100,000 90000

4 PostAcqn sharein
Patent's Asse
share got 40000 xx

Inustin Need 40000 a

É
MCCES 90000
TO cong p
rent

URP elimination 10L Inventory I C Profit

Instin Mitel xx
Is Inventory 41 040000 EUppKokx401 160007
He
Total Urp
IE c
Parentshares

gg
Caus pie toooo
TO Investment in M Itd 16000

144
 sold Downstream
Scenario B M
v

OE
IFI
Inventory
profit
1L Saf

UfoInventory at
CB TradeRelables IOL 3400 Of
Ofs
To Revenue lol

Coors
Gp 12 gif
of soldto outside party
soup hot co as a Reverse Cols Eliminate
old as
oursharein
Associate Revenue Ale Da Cio igniting
40
at 1.62

TO COGS
3.641.4hL 91 401 XUOY
to Investment 16k

Carnot

Mft fur
same

summat
a thukku
I
Scenad AK Malala
He
parent Peggy
tu
sales
record
cogs All records his share of Profit
Éiminate
Safeco
01s He eliminates his share of URP
www.ygg.gg 145
 AK holds 301 stake in Mukkultd
Ef
Scenarios AK sold goods cost9 4L E 5L

outstanding inventory out of above was worth E 3L of

sale
Elimination of RP

cYY n in 2 30 3
cost
4L
Profit
IL
sales
a

gag he 2141 31
Revenue at
To COGS 72000 Calx soy gyyy
18000 x 307
TO Investment
18K

seeing age coast profit

sales
5L
IL profit y
Haram Earnedby

taukkuxgq.se cassociate

Incest 30k 2042 52 Consold

to caus PIL 30k

pure eliminate Parent

eliminate
Caus Pll 18000 a own share
TO Insist 18000
Gok X 307

146
Illustration 14
Scenario A x y

parent
He
Iv
C A IOL
Soldfor 8L

J E In the Books of X
Bank ACC Da 8L
PIC loss Arc Da 22
TO AssetC c.A IOC

Scenario B Y E X
H
L parent
He
CA IOL
sold for Purchase 8L cost
loss 2,1
Nt Parent'sstake
ing y's loss
Investment in Ju xx

I PostAcanloss 94
injy
21 507

J E In the Books of x Parent

Asset Ale De 800000 cost
TO Bank 800000

Cows pie share of 108s Da 1.00.000

TO Invest Are 1,00 000

147
 Discontinuance of Equity Method

30
At etd s Markku ltd
stake

Ak sells his stake in Mulan Hd stake after such sale falls

Below 204 Discontinue
Eq Method

Ak acquires additional stake in Malakal'd after such additional

stake it increases to
more than got stake
Disc start
Ind As 103 4170
Eg ragweed
control

Exemption from Equity method

Ak 707 40
Egg Mukkultd Adani Itd
Itd stake stake

IndirectAssociate

Beech waala Exempt Eq Method

If 4 conditions met

25 Alte
Ee
Instant
from
Eq Method

148
 Egs 98
95
Akita Raghav Itd kelash Itd

Investment
Entity

Ale Kelash

Equity method
s
Indirectassociate for
CExept 21.61
why Because
the stake is held
indirectly throughan
Inust Entity
Ale Inst FYTPL

90 30
Egf All s Raghav kelashitd

might
Direct stake 159
mayapply
Exemption

throughRaghav 401 304 121

Ak Effective stake Indirectthrough
271 intensity
o
Dgirectstake
Ift
No exemption
i e Ak will have to apply
equity method for 154 with Kalash
L

Also Refer 02 149

 Illus 12 LDR Set

Entity A
20 EFFIE 100
Entity C
Marent s Associate

B Told 20 stake in C Disposal without

É fÉEntiy B zoo
Givenin
Bls
lossofcontrol
can'stake t
Nce stake t
Postage Co e 00 201 20
JEHe Entity B
Inestin Bite 220 CIB Alc Da 300 Given

Insol J E TO ME All 200 Given

L
nestin B Alena 20
lotasked to puffcousoe 20 To Corso EACC 100 Blf
sresent this
is them
gAssociate ka pie would profit we decoddin Pk
u u
og u
ante a
a n ace u u one

150
 Ind AS 102 Share Based Payment 25 10mks
t
t t t t
1 Definition 2 Scope 3 SBP with 4 SBP with Madket Based
other than employees condition
employees Equity say
co 3rdparty co a Earp

t t t t t
6 Modification 7 Cancellation 8 SBP with 9 SBP with cash 10 GroupSBP
Repricing employees alternative
cashstettled

Def Akita
H
receives Goods
SBP Agreement btw 2 Another Party services
He
employee zrdp.am againstpayment
of

Shares cash
of Basedon
Akita
He theprice
ofshares
Equity He
settled cash
settled

SBP with other than Employees Co 23rd party

L s

Equity settled Cash settled

co receives goods services co receives Goods seaxices
co
gives shares Cos gives cashBasedon thepriceofsha

Asset Exp Alc Dd

TfAsset ExpAle Da
To SBP CiabY Alc
TO SBP Reserve.CO E SBP liabyAicpa
SBP ReserveAle Da TO CIB 152
TO ESC
To see Prem
 Eg promised to give 100 shares to Danish Itd in exchange for
IPhone worth270,000 All's share Fairvalue is 2880
V E
JE IPhone Ale Da 70,000
TO SBP Reserve 70000
SBPRete toooo
TOESC Face value
to seePrem Blf morestable Iterating
a value

iii iii
He
istpref Fx of Asset Cash
givenup 1st
pref Fuof Assetacquired
2ndpref Fxofshares
givenup
3rdpref CoA of Asset givenup cash
paid
He He

PRE ke Badle PPE exchangehoga PPEacquirekark own shares

He
Ind As 16
diya
Ind AS 102
Itd
Egf Akita promised to give 100shares to Yaswanth in exchange for
011091 1 Fair value of share was 400
230000 cn
Zaantgy Face value 7100

010411 Daun Grant date noentry

In case of goods we Bookon
In case
D
Day

3131 2 MaineExp All Dd 090,000

TO SBP Reserve

Maine ExpAll Dd 10.000

3131 3
TO SBPRese

31 3 Xa Tante ExpAlc Da 10,000

TO SBP Rete 10,000
SBPRese 30,000
313 705 2888065 9,1 9
100share x too 153
 SBP with Employees Equity Settled

Grant date
Date on which the co Baggreement
Hemp agree towards spp plan
NEE If Agreement is subject to approval of higherauthorities then Grant date
will be date of approval

It is the period to
Nesting period during which all specifiedconditions are

satisfied
share BasedPayment Exp is to be booked and the vesting period

Conditions
I 1
Vesting Conditions Non testing conditions
c s
lockin period after
employee receives
Service Condition PerformanceCondition shares

eg 34ns Emp has to eg Syrs lockin

periodafter
stay in service Non Market market Empreceighsary
He
Based Condition Based
UP 34ns condition
He
Salestargetfun 104
shares price find
Profit Targetfun Target sun
in ago
Cost
Rayet
He
Lurs He
not within the
control of employee
h Éy
XP 2yrs A Krs
SeparatelyDiscussed
in Paint 5
can of Exp to be No ofamp Mo of Fairvalue expired
Recog each yr expectedto x shares x ofsharean x Period
fulfil the peremp Grantdate
during the vesting conditions
period total vesting period
154
G ExpAlready Recognised in Previous leads
Egg On LoudÉimp Announced a 555 plan EgSettled where employees
are required to stay in saicefor 34re Total Moof employees on
01 ou XI is 1000 employees each employee is eligiblefor 100shares
At the end of art 20 employees left it is expected that more 30 employees
will leave the over next 2years
org
At the end of 4 2 25 employees left it is expected that 15 employees
will leave the
org in next year
At the end of ur 3 20 employees leftthe org
Fair value of share on Grand date is 120

Required calculate the exp to be recognised each year Pass J E

egpemctedhmatkarna

1 31.3 x2 og Y.figg
2ndarend
istyrend urged
1

11 Emp Gooo at Emp Gooo emp.az

No of 1000 950 1000 20
eup
No of shares 100 A 25
Fix on G D 120 E 25
Exp to be 950 940 100 120 2
x p 3yrs 1
1003120 Ep 3ms
Recog
38,00 000

3720,000

Exp 935 100 120 3

3
C 38 00,000
I 3720000

37 00,000

155
 FEI
011041 1 No entry
311031 29 Emp Ben Expire 38.00.000
TO SBP Reserve CO E 38100,000

31 31
1 EBE Ale Da 3720000
TOSBPReserve 3720000

311314 EBE PLL AC 3700000

TOSBPReserve 3700000

935employees
During Exercise Period qualified

CasedCtu 935 employees exercised their SBP

SBPReserve Al É 1,12 20,000 93590 100 120

Assumefacevalue
TO ESC 93,501000 935empxlooxity 7100
To see Prem 18,701000 935 100 20

Case 1935
empqualify Only 900 emp exercise

SBP Reserve ÉDa 1,1220,000 935 100 120

TO ESC Ale 90,09000 900 100 100

TOSec PremAle 18.00.000 900 100 20 ExpBooked But
A
To RetainedEarnings 420000 Blf 35empxioox12oJEmpPidNotex
reise.CO.E
Bal of SBP Rese Co E is tf to Ret Earning Co E
156
In case of Eq Settled Transactions
Reversal of Exp Booked Can be done Onlyduring nesting
through pie
period
Reserve can be
Postvest'speriod During exercise period AnyBar of SBP
trf any Within O E
ie'sBpRese
Bal will be
trf to RetEarn

157
 Illustration 7 LDR 20 1 20 2 20 3

Particulars 1st yr end 2ndarend 3rdyr end

sue 419 421

Noof 440
amp expected
500 29 29 21
509 1 3431,0914941,9p
No ofoptions shares 100
leave
are its't its

F von Grant date 122 122 122

Expired Period ly 24ns 3am

24ns coexpects 34ns co expects 393 Tagg

Total vestsperiod Imp to meet tomeetin
targetin 20 3
20 23
2684000 723,867 1728,333
Exp to be Recog
1 49 100 2
1002122 31 421 100
3122
3
C 2684000
2684000
C I 723867
EE Decurend
21 100 122
O'lol XI GD No entry on exercise
31 121 1 EBE ACDA 2684000 SBPReserve 51 36,200
TOSBPReserve 2684000 TO ESC 51.36.200

ICAI assume Fair value Face

value
31 121 2 EBE AK Dd 723867 No Sec Prem
TOSBP Reserve 723867

31 121 3 EBE Are Dd 17 28,333

TO SBPReserve 1728333
158
Illust
EBE 316,667
Uriend
TO SBP Rese 3.16.667

10000 95
temp x 431

92nd SBP Rese 316667

TO EBECpy 316667

Not expected to rest in future Reverse SBP

Ur 3end EBE 950000

TO SBP Reserve 950000

toooo y
temp x
CI 316667
z
316667

OnExe raise SBP Reye Alc Da 950000

TO ESC 950000

159
 Market Based condition Not fully within the control of the emp

Co announced
EI 200 employees 100 shares each Fox on Grantdate FIS
Condition market price of the share shouldexceed7400

co
Day will Estimate a
vestingPeriod 94ns

caste conditiffetinzuears
Condition met in 6 Years
Still Exp will be booked
ur lend 9
as
per tears 200 317
Ur lend 7 5L 200
109150 1
902 end 7 52 Ur Zend
57
17
Ur 3 end 7.5L ur 3 end 7 54 751 152
d
484 end 75 BookfunExpof
Urs end ur 344 in 3rd yr itself
Weep is deferred to
426 end I 48526
Issue shares to
emp

V p expectation if condition
3 441 what never met

Url end 7.5L

2 F se
Booked
3 7 52

4 7 5L

Reverse full SBPRete CoE 302

Exp
ÉÉmet to R E CoE 302
160
 Modification Repricing
x

eg a

01 04 x1 1000 service condition 34ns

emp
vp
Fairlane on Grautdate
Mo of shares gooo shares 150
peremp
L
Mktprice Eteriseprice
250 100

If phatprice 120 d
Exerciseprice waived off 0
F EW
wya up Fallafter waive off of exercise
7120
price

north of SBP is increased mad

by tycoon
720 2120

1
Hint Treat original SBP Plan Separately Retreat the modified Plan
Repriced Plan
Separately

OGSBP
1 I 1
GD Ur Lend UrZend

No
get 25er 25er
entry 1084 5000
150 43 5000 150 43 5000 150
F von GD 150
shams Pyx 1084
X313
XP 34M eager
E 250
Emp 1000
Shares 5000
E 25er

161
 Modified Plan
Date of Mod
I
Otoh X1
H
grammarian
Yr Lend 423end
X GDformed Exp
P 24ns Remainperiod 8000
oxy
from Date
of Modification 25er
Earp 1000
Shares 5000 v
Kitnenaluese Fi 150 241 120108 Exp 1000 5000 100
worth was 3
increased intake infant eager
on
MsdnDate mod Date 25er
He
20 120 Noentayon
G'D
formodn

IE EEP Mad

oiloulxi No entry Noeutory

3131 2 EBE 25er No
entry
T0SBPRese25cr

31 31 3 EBE 250 EBE 25

TO SBprese 256 TOSBPRese 25

3131 4 EBE 25er EBE 25

TO SBPRese25er TOSBPRese 25

OnExerise SBP Rese 125er

TO ESC 1254
162
 Illus 10 LDR

Hint Ale for Modified Plan Separately

original SBP Separately Repriced

particulars
OGSBY Url end 42 end 4r3 end
905 899 896
1 No of eup expected 1000 55 60 1000 35 30 36 1000 35 30 39
2 No of shares 150 150 150

3 FY on GD 129 129 129

4 I 2 3
Expired Period
5 Total XP 3 3 3

G 58 37,250 57,59850 5740500

Exp 905 150 129 43 899 150 129 213 896 150 129 313
758 37,250 45837250
f 5759850

Modified Past Ur lend arLend 483 end

in
b
1 No of eup expected 899 896
2 No of shares 150 150
FY after
It 3 Fairyame Iggy modificath 30 30
4 Periods I
Expired 2
It Total xp Lyn Lys
6 2022750 2009250
Exp 896 150 30
899 150 30 42
3
f 2022750

163
 Extra Not asked passed by ICAI
Ee

OG SBP Modified SBP

Day NO entry Noentay

Yr end EBE Ale Da 5837250 No entry

TO SBPRese 5837250

EBE Ale Da 5759850 EBE Alc Dd 2022750

Grand
TO SBPRete 5759850 TO SBPRete 2022750

EBE Ale Da 5740500 EBE AK Dd 2009250

483yd
TO SBPRete 5740500 TO SBPRete 2009250

OnExertise SBPRes Alc Dd 2,13 69,600

TO ESC 2,13 69,600

164
 Illustration 22 LDR

of
finishing

G'D
FY
H FX
0.90 1005
to

Particulars urlend
ten
422nd 9r3 end
31003 x2 31.03 x 31003.49
He
Infon not
1840 given
No of emp 0
a
No of shares 1000 1000 Not asked in
q
Fron G D 1.2 102

ExpiredPeriod I 2

Total VP Byers bys

740000 732000
Exp
1850 1000 12 43 1840 1000 127213
7740000

2
31 03 2
Madan
39 31 3 9
Gm
1840 Not asked
No ofshares 1000
FairkalueonMod 70.15
9061.05
d
0

ExpiredPeriod
Total Vip 9gg
92000
Exp 1840 1000 0.15
955 165
 Cancellation

Eg Co Announced SBP 1000

emp
No of shares 50 shares
pedemp
Fair Value on G D 2 500

Vesting Pediod 54ns

Dad No Entry

attend Exp tooo x 50 500 45

50,00 000 EBE 50L
TOSBPReg SOL

Ur2ed Exp 50,00 000 EBE SOL

TO SBPReserve Sol

Yr 3 SBP Cancel Comp has cancelled

ur of cancellation 483 t Uru 425J Full Exp Bookin 483

EpBook 150L EBE

Tool
1000 50 515 TO SBP Resen
500
El SOL
El 50L
Balof SBPReserve
1
ur 3 ur of cancellath SBP Reserve Are Da ago
feel Reverse TOEBEXR ECO E 250L

Ko on cancellation decided to compensate the employees 7450peremp

H
F on date of cancellation 7410 In the Yr of
Cancun

166
I
 mit
É 3 fioooxsoxgtofttondateofcanceuncrnax.ci
may
limit

SBPRex RetainedEarnings Alcoa 2207205L Excess

Alc Da 201 1000 50 740 payment
PIL BH
Es
TO CIB
loooempx 50
7483225L
Shares

167
Illustration 11 LDR
urofcanceun X
Particulars an end ar2end ur 3 end

Moofemp 8 8 98
No of options 2000 2000
Fair value of option 9 0 130 130
I
Expired Period
Total x P 34m
693,333 16146,667

8 2000 130 43 9 2000 130 42

9693333

EE Dad Noentay
Tried EBE Alc Da 693333
TOSBPReserve 693333

16,46667
YÉdnceun Ésppresene 16,49667

SBPReserve All Da 23,49000 693333 1646667

To Retained Earnings 23.40.000

Compensation R E AK Da 16,201000 9 2000 90

PIC ACCDACBIF 90,000
TO CCB 17 10,000 9 2000 95

168
 SBP with employees cash Settled SAR's stock Appreciation
Rights

is same as Equity Settled Except

Everything

Exp lo of No of Fair value on

amp Expired
expected to x shares X GM each Cl period
fulfill arend
the condition
Total vesting period

E Exp Already Recognised in Previous Years

IF EBE
TO SBP liaby

settled
Eg He cash settled
He
Reversal Reversal
During Vip Post xp
During post AWysthrupKLEBE
I v P
IE SBP Uab
SBPReserve S P Rome
TO EBECPLY TO EBE PLL
TO RECO E

169
 Illust 21 LDR cash settled CSAR
9 yrs
Casely testing Period

Particulars 3131 2 31 3 13 31 31 4 31 3 45
No of 75 75 75 75
emp
No of option 400 400 400 400
Fv each 48 end 210 220 215 218
Expired Period lur Zur 3
yr 9 yr
Total V P 44s 94ns Lyn ay
Exp 1575000 1725000 1537500 1702500

oiloulxi No
entry

31 3 42 EBE 1575000
SBP Gaby 1575000

3131 3 EBE 1725000

SBP yay 1725000

3131 4 EBE 1537500

SBP yay 1537500

3131 5 EBE 1702500

TOSBP Ciaby 1702500

ICAINotpassed.sk
SBPCiab 65,40 000
TOCIB 6540,000
75 400 218 170
 Case B In 2ndyr 31 313 we came to know that XP is Byu

Particulars 31 31 2 31 3 43 31 31 4 31 3 45
No of 75 75 75
emp
No of option 400 400 400

Fv each 48 end 210 220 215

Expired Period lur Zur 3

yr
Total V P 44ns 34ns 39ns

EXP 1575000 2825000 2050000

oiloulx No
entry

31 3 42 EBE 1575000
SBP Gaby 1575000

31 3 43 EBE 2825000
TOSBP Ciaby 2825000

3131 4 EBE 2050000

TOSBP Ciaby 2050000

ICAINotpassed.IN 6450000
4SBPciab
TOCIB 6450000
75 400 215

171
 SAR's cash Settled SBP that Vests Immediately

In above case since l P 04h full EBE will beBooked on Grant date
Fu on G D
If there is SBP crab will be remeasured based on
any exercise period
the changes in Fair value

Illust 2 LDR
on out to GD vests immediately
EBE AK Da 950000
TOSBP Crab 950000
10000 295
No ofempxNoof FY on G D
Shares

During Exercise Period Remeasure SBP U'abbased on changes in Fair value

3131 1 10000 951 112 4950000 114000

EBE 114000
SBP yay y 114000

31 31 2 toooo x 921 X 109 E 950000C I 114000 61200

SBP lab 81200

TO EB 61200

31 3 73 10000 891 114 4950000 114000 61200 11800

EBE MCDa 11800

TO SBPCiabY 11800
172
31 3
13 SBP Uab All Dd 10 14,600
TOCIB 10 14,600
10000 897 X 114

ICAI Assumption last day ofexercise

Employee will exercise only on 3,1oz

The amp who left during exercise period is Not taking his saris cash

173
 Illust 24 LDR 011011 5 GD YP Lyn Exercise Period Lyn

Particulars 31 121 5 31 121 6 31 12 77 31 12 8

4oemp 101
36 Ind III Fye 2X

No of 36 36
e 30emp
emp Gemp 30emp H
H H Remeasure
No of option 1000 1000 Remeas Remeas I y
712
3 F Von arend 12 8 Fx
Ei 13
9 Expired Period lur 2y
5 Total VP 244 Lyn
G 216000 72000 162000 30000
Exp
36 1000 12 12 36 1000 12 22 6 1000 104 30 1000 12
30 1000 13
4216000 4216000
216000 E 72000
E 72000 162000
60000

IE Giloilxs no entry

31 12 75 EBE ACDA 216000

TO SBP CiabY 216000

31121 6 EBE All Do 72000

TO SBP Ciabl 72000

During ExercisePeriod
31 12 17 EBE 162000 Remeasure

SBP Ciaby 162

3 I.v
SBPLiabYMlDd60.000YPaymentto6emp
Paymentto TO CIB 60,000 6 1000 10
CGempxFIO 174
 SBeciabu 30000
isÉg TO EBE 30000

31 121 8 SBP U'ab 360000

Paymentto To dB 360000
30emp 30 1000 12
I.x

Note When Both Fair value Intrinsic value is available

Imp Hint
liar will be Remeasured
During Exercise Period
Intainsix Fairvalue
value He

Foremployees Foremp
who have who have
still Not
exercised exercised

Payment will
also bedone at
Intrinsic value

175
02 LDR

I 1 I
011041 2 311 1 4 12 51 4
31131 3 1 51 4
GD H
Exercise Approval
cash F4 6 FU 8 date
of
settled FS
V P Lyrs
Payment
FU 9
No of options a 10m shares
Ind ASIO
W NonAdj
CO2 No condition
existed an Bls date
or lou X2 G D No
entry
31103 X3 EBE 30M
TO SBP Way
30m
IO M X F6 423

31 03 44 EBEo
spp liard 50m
Clomx I 8 4
23 E 30m
FY on Orlosky is 9 Non Adj event s as no condition existedon 31131 4
AsperIndAsio

011051 4 Remeasure Fx 79 omx 79 30m som

ExFreise date
EBEosBp liar Tom

Payment SBP liab All Da 90m

TOCIB 90m
comx
Eg
Kint J E not asked i Present above J E in statement format
176
 Concept of Grant date Meas Date Ref Q1 MTP Rtp

SBP Plan

co with
employee
arty
H H
GD M'D GD ApprovalSBP Agreement
sameI MD Date when Goods seavices were received

Faffroncal Fair name

on G'D
date

177
 SBP with cash alternative Option with employee

Eghity Cash Based on priceof

shares shares

Illustration 3

a 1
oil ol x1 31121 1 31121 2

Eq 220000 Eg 720000
step Eq settled Cash 60000 Cash 772000
I emp x 1500shares X 102
lempx1000x120 42 empalooox 32 22
153000 660000

se
I
i
13,000
g
steps Incremental Eq Step E step 2
113000
If this was zero ve
153000 E
then Incremental equity
40000 H
H Incremental No Alding
Eg
Book this
in Lyrs yep
Alding

178
179
180
181
182
183
 Ind As 115 Revenue from Contracts with Customers 10 16mks
v u

1 Scope 2 Core 3 Five step model

principle

t t
step Identifying Identify Step
Recognis.p.o
Step Determine step Allocate step
the Contract Tip IP to P O Revenue

Step Identifying the Contract

te te te t
Criteria r Coutant ey Modifications
Combining Contracts Contract
Recognising a team
coutoratt

O
Step Identify P
4 I
Distinct p O Promise to transfer a
series of distinctgoods
or services having same

pattern of transfer

Step 3 Determining TP

Variant Constraining significant Noncash

Consideration

consideration egg payable to a

financing consideration
variable component customer
Consideration He

slottingfees
1

2 Co
op Advt Arrangements
184
3 Price Protection
 If Steph Allocating TP to PO
t t t t
Determining Standalone Allocation Allocation Changes in
sellingprice of Discount of Variable Transaction
Price
Consideration

Revenue
Steps Recognise
te 4 te te
Cantone Transferof methods of Transferof control
control at apoint in time
over a period
measuring
in time Progress

Special Cases
t t t
1 Principal IIs Nonrefundable 3 Customestptions a stealth
Agent upfrontfees for additional Right to
Goods seances Return

t t t
5 Accounting for 6 warranties 7 Consignment 8 Sale'tRepurchase

Restockingfees Arrangements Agreements

d
9 BYUN hold to Licenses of 11
Cotutoract
12
Seavictfoncession
Costs
Intellectual Arrangements
Property

185
 Egl Conceptual clarity
RAK customer
was a
co convent

Reliance Ctd Jio Ssp away Book

4 Juteanetseavice 12k lokx 1420
Internet services ale
gooo Peter Free Gk 3k 164 9207

Install free 2K lox 2 20

Day 1k

Revenue Dayo
Book
Ssp s
standalone sellf Price onetime Service

Jio
IE
CIB Ale Da 10,000
DH
To Reverse AK 4000
To Adv Revere Clian All 6000

stananthend Adv Ravenna Ale Da 500

To Revenue 500

Golam
2nd month end u

u
12th mouth and
186
ÉIeption 5 conditions of step Notmet still Reeg Revenue
EE
co Seller
wants to
buy house funny
EE Mi
Customed Ind As 115

www.t EIB Are Dor 10000

Day 5 conditions Not met to aangnetian 10000

After 3days Rejected Me thy House

I
Keeffe't
Ady Ine Ale Da 10,000 Rex Booked even if 5
TO Revenue 10,000 conditions Not met

187
Eg Coutant Mud
I
25days
and s Chetan Hd
71000
Cutomer Setavice
perday Provider

After 15days
I more contract btw

Farmhouse Painting
Aka Chetan

Crays x Eioooperday
ÉÉ
É
new Sednice t Modiseoffered

stay to 25thmay

84 Original contract 25days ooo 2,1

studio Painting

Revenue Booked till date 15000

Afterdays

u Disc on New Seanice Dueto old

contract
MEN Farmhouse Paints 12days x 700
perday
New Service 26thMay 6thJune

Oldcontract

836.36 from 16th

perday day nay
12g each
day
Revenue
will be 836.36
He
Prospective Alding
188
Egf Original Contract 25days X 1000 perday
25000

After 15 days Revenue Booked till date 15,00

On 16th Chetan asked for additional 7days 800
Day for original
x
perday
contract Exists
New service studio days A
No

Acting is to be done Cumulative catch Ed Computation

on
up Basis
Retrospective

If lamps knew about this nod from 1stDay

25days x 30600 956.25 Rev
10003 perday
7 days x 800 32 days

Revenue should be Booked 1956.25 x 15days 14343 75

Revenue actually Booked 15

8
Excess Booked 656.25 Revenue
Reverse
an Mod Date
from 16thDay seam
Day Revenue
Booked 956.25

189
 Illus9lurj
Of contract 200hours X 7150 per hour

Madh 50 hours X 2700 hour

per

Revenue Booked till date 15000 loony

too nouns
X 1507
completed

Rex should be Booked 100M X 2940

perk
14000
mi cumulative catch up Basis 1000 Excess Revenue
Booked
Reverse it
Hrs Rate
and 200 150 Emo hour
sox 100 35 per

190
Eg Variable Causidedation

Frfigest
Nitish

c
Gm
consideration
400 pages x 900 240000 Fixed

tem s
within nude than Gm
He

Biff ooo variable

consideration
Penalty sooo

IIc y

Tr Price Fixed t Variable

He
Expected value Method
Ault Estimate a man I most likely Aunt Method

191
 Significantfinancing Component Rex Book on Delivery Date Delivery Day T P

Burled
Cooma
EE saved me
laptop 1.5 lakh s payment after 1.81
c
lur
Payment 1 52 207
saggy
after lyr Sat

Cooma Books
Retable FA
Dad 1.52
To Revenue 15h

arced Retable FA 30k plc fare

3011
TO Tut Inc Revenue 1 52

1.52 261 OtherIncome 3012

gut
Urlend CIB Alc Da 1.8L
TO Relable 1.8L

Egf Cooma Seller Akita

Hs Customer

customisedaptop

Delivery after I yr 11 lakhs Delivery Day Revenue

PaymentDay 10 lakhs

Refenne Booked
arlend DeliveryDate

Rev Book 11lakhs Sale Date T.PT

192
 Carma Books
CIB Ale
Dad Da lol
PIL Carl
TO Adv Ine lol

Gnats go Rex 112

J Igshi Jut Exp 12
12
End
To Ady Ine IL Yu
10L

grief'ItyAdy Ine IL
TORevenue 11L

193
 Ssp Standalone SellaPrice
Steph Allocation of T P to P O
atiifggntheratioot
ssp Ssp
noooo
qq.it
ED E combo Ss P
20k 81428k
FR OCOUXI to 30.06 X1 8k 2286 5714

Senn Gfof X1 to 36.09X1 8K 2286 5714

1714 4286 20 94281
Audit 01 10 1103112 1 6k
law 0101 21031 03.112 84 4286

Éx

Ta
EI CEI FR SFM Price
Combo Price aminReise
13amus Break
Ssp Disc Allocation
OK 4K 4K 811 814,61
FR
s 4K 4K
Is k

Combo 2 FR SFM Audit t law Combo Price 200007

Ssp Manat p
FR 8K 4K d M
He
sen 812 Gk 912 exception
Audit Gk when discount on small
Gk bundle ofgoods is same as
law 6k largerbundle whole discount
61 will onlybeallocated to
2812 ok 194
20k smaller bundlegoods
EE Residual Approach
Gl Combo 29000

Ssp DiscGiven
FR OK Ik Attn
Seen 8K 114 7000

Audit 6K 500 5500

law X a 4500 Blf

Sst not available 24000

Total T P e After Disc

Residual Approach last aesaat
Allocated Price
Can only be used if price of of other PO's
only I P O is Not available 24000 C I 700047000 5500
If the value under Residual
Approach comes to zero
H
This method cannotbulged

EGE
ResiduffMTI 20,000

SSP Disc Given Allocation

FR 8K 2K 6000
Seen PK 2k Gooo

Audit GK IK 5000

law 3000 Blf ResidualApproach

I cannot be used as
Range 4K 8k
allocation is NOT within
the range

195
 Illus 55 LDR

Powdreet Ssp
9 Woo 7143
47577 sax 254am

2 45000 12857 32143 sax 45147011

70000 1200007 50000

Cast
Paoduct Ssp Disc Allocation
X 50000 0
50000
y 25000 7143 17857
2 45000 12857 32143
120000 20000 1 00,600

Reason Discount on Smaller Bundle as

422 is substantially the same

discount on larger Bundle XYZ i e 720,000 Full Discount will be

allocated to smaller BundleGoods i e only 422

I
Givingabove
Product SSP Disa Allocation
Eye X 56000 50000
TOUT P
130000 7 25000 7143 17857
2 45000 12857 32143

Alpha 30000 Blf

15K 45k
Ray 130000
1.3 EI SOKE 17857 321433

It is appropriate to use Residual Approach as allocated Aunt falls within

the range 196
 Ssp Disc Given Allocation
Cafe
Totart P X 50000 50000
108000
9 25000 7 143 17857
2 12857
45000 32143
Alpha 5000 Blf
1st Gsk

Itis not within the

givenrange
i Residual Approach is Not appropriate

197
 Illus 32 LDR
Particulars Url yr 2 423 424 465

Renews
A 52632 184211 921053 289474 52632
Fixed
lolakhs for CongD fax fax f'm
92105 13158
5263 18921

I
B anomie

pug
ex
fix t
C Cumulative Catchup 98685
Adj and

D Total Revenue 57895 202632 463158 960527 65790

ay
If should51 12.52
101 2

Total Cust 50000 175000 900000 275000 50000

Cayey

F Operating
Profit 7895 27632 63158 185527 15790
D E

13 641 13.641 13647 40.291 241

G Margin
repetend I a
o
D mg x.g1 x
no

198
conf Cumulative catch up Adj on Variable Consideration

Variable Cons to be Booked till u 4 236892

41.334 tyg
250000
93921

cess'Itually Booked till 4 4 138157

5263 18421 42105 7236
Additional V C 98685
to be Booked

Illus 31 CPR
As on 30thJune Xl
10units X 71000 516,000 Revenue Book
pin
Alternate way
As on 30thSept XI As an 30thSept Xl
50 units x a 795000 Revenue Book CumRevenue Ctia Date
Fauop
10units X E 1000 Revenue Reverse to be booked
7106p a He

2nd Qtr met 99000 60units x5900 254000

Revenue
Book less tri fabray 40001
Qtr2 Net 44000
Revenue to be
booked

199
 Customer provided Goods ad services
customer
ownerSachin
Autilia Towers Bldg
He
DJParty
Hi
Food Cleo earningRen
Ina as 115
HH Conkag ga

d Ggg Preparation 49000 Referee

case onkar any food Prep 20,000 Bret customer will provide Goods
Reread ooo worth729000

worth goods
Sachin 29000
customer
He aÉ Hawai Cankar
Halwai
vegetable fruits purchase

shop 29000 RITE

preparation

98
Halenai
whether the cantonal ofgood
Reverted
provided by customer was trf Parshasex
to Co Conkar

YEI Ésales
Purchase 29000 20000
sales goooo

want customer
79000
any matronage
6600 HO
38 200
 Consideration Payable to a costumed

Purchase innate
39000
custom
n
Hawai okay sales inflate

t
Reverend
59000 pormas.tk
Reueme5900Taooo
29000

Sale with a Right to Return eg Amazon

Eg Amazon Hd sold 10 laptops to Naveen for 1 lakh each

Costof laptops was 75,000 There is a 30 day Return Policy
Amazon expects 3 laptops to be Returned

Amazon Books IE
pe Pll e

CIB Ale Da 10,001000 511 91Hap

Dad Faptops

To Revenue 7 laptops 7 00,000 costof

Grads Slap
sold
To Adx Refundliable 3,00 000
laptops I
3 laptop outflow
cost
MYDay Right to Receive Asset Are Da 225000
TO COGS PIC 225000
319 8758
Ig r

201
 After 30
pays
to
3 laptops Returned No Return
He
Refund Ciaby All 32
Refund liableAle Da 32
TORevenue Ale 3L
TO CIB 32

COGS Alc Dd 2.25L COGS 2.25L

to Right to receive 2.25L To Right toReceive 2.251

Laptop return
Refund liar Ale Da 31
TO CIB All 22
To Revenue All IL

COGS 2.25L
to Rightto Receive 2.252

202
 Restockingfees

eg Il Refund 71000 restockingfees MetRefund 799.000

Return cancercharges

eg is same as above except restocking fees to be charged on each laptop

returned is 71,000

Daud CIB Ale Da 10,001000 7laptopsx12 71

To Revenue All 703000 3 laptop x 1000 3000

To RefundCiab Ale 297000

99000 3laptops

Right to Receive 225000

TO Colts 225000
75000 X 3

After 36days
IfRet_um Refund Ciab 297000
TO dB 297000

COGS 228000
to Right to Receive 225000

203
Illusy LDR i

Dayo UB Ale Da 50,000

TO Rey 970 50 48500
Refund o
Entries we asked

only Amt was asked give

Right to Receive AleDa 900 little expin of concept Aunt
To cogs 900
30 30

204
Impotent Retable In Ques entry was not asked
To Revenue IL

format
attend Relable Iok
TO Tat Ine 10K

urged Relable 11K

TO TatIne 11K

42nd CIB 121000

TO Relable 121000

II
42 Opn Jut lot as
Repay
12 1012 11 Lakhs

2 I IL 11k 1.21 Lakhs

205
 Illus 39 LDR Sep Fin Trans
Gea Coutant Rate Mkt JutRate
107 E 167

Transaction Price DiseRate

Delivery Day Price
ler per Yui

guy yep cantaart Rate at that

167 14

Delivery Day Price F Tr Price

Ren Yim.nu
16660

Trans Price Rey a pal of pq qpt19tp.a permonth

He
212470
monthly
for 60 mouths
212470 X AF at 60 mouths 1.1666 9

60 times
1 6666 agg H
at
C
212470 X 42 97701
91 31 327 Tr Price

Disc Rate ITH

206
 Illus 40 LDR
Rev Yr 2 end Book

6
He
Delivery Day Pricey
Contract Rate Mkt Rate
He
o
É
Dad CIB 4000 Cat Adnan Mptate
TO Adv Ine 4000 Mr Op Tut It Repay as
I 9060 240 4240

2 4240 254 4494

artend Jut Exp 290
TOAdv Inc 240

Pll
ahead Jat Exp 254 Tat Ren 4494
494
TO Adu Fnc 254 Exp

IN 240 259

Adv Ine Are Da 4494

42nd
To Revenue All 4494

207
 Customer options foradditional goods or services

to ticket
eg
worth 7250 7 2ticketfree 7100each
Mon
Sunday wednesday 9am to 5pm

10ticket x Two Pos

Dad 256 25,00
to I
10tickets Sun 2 tickets wed
He

SSP 2500 SSP 200

lofickenx250 42ticket x 7100

Allocation 2315 185

2500 2500 2500 2002700
2700

EE for theatre
Sunday CIBAle 2500
TO RevAK 2315
TO Ady Ine Ale 185

Wednesday Adv Ine Ale Da 185

samir taps
to Rex 185
avail

208
 Same as that the theatre expects on Day that only
Ez egl except
I ticket will be redeemed out of 2 ticket

72500 Est should be

Day Total TP ts considered

Hickey gyp
2500 10
Ssp

Allocate 2904 96

Bill U hold
Day Sale Day Payment Delivery after 6months
MacBook on Instructions
d Po hase Cand He
of customer
Customer Co The RUR Control of Goodsis
He
tot to customer on Day
ReyBook on
Dan Only delivery is pending on instead
of customer
Also comma cannot sell this
mommy coma mightalso doted
MacBook to
custodial services fam any other customer
warehousing in these 16months

the total Fp IPOs 3.00.000 Given

m
save offaptop custodial seated
SSP 2.81 30k Given

270968 29032
ex
311 3430143

JE CIB Alc Da 300000 Adv Ine Otp of

TO Rex 270968 to Revenue 6m

Ready Ine 290320

209
 Sale Repurchase Agreement

Day
Nitish for 2100lakhs
É
get
NitishItd
In Akita If Financing
Arrangement
Egan
0113ALC Da 100
µ Fc Hc O
Afterlyrear
Amid repurchase
usted JutExp Alcoa 101
go Nitish H M
TO FLAK 10L

Uttered Fl 110C
TO CIB 110L

EI to Nitish for
sale
E toolakhs

d Nitish Itd ssfin.AM

angemeut
a
Dan Receiveooh lease Arrangement
Hi
Arend Akcharges 101
Payday
toNitish for
Ine if Anita wid using

repurchasefrom the asset for lyr

Nitish Itd I 90lakhs

Jax CIB Ale Da 100C

To see Dep FL 1001

attend See Dep Fe lol see Dep Fe 902

I'd 210
to cease Rent Ine lo TO CIB 90L
X licenses of Intellectual Property
DharmaReaBook
2 navies
Dharma patent
H
Eg Justlike
Recorded
soggy
Netflix Day ftp.fiox
lectures

Pharma
2ndcontract upcampingsans RE
5 New movies make a Release on Netflix OTP of
t 5yrs
3 webseries

Recorded
ERegular Koonoint
sale to student Revenue Day 1
live
Baton 3m Revenue OTP of 3m

211
 Slottingfees Metfrom FP
customer
Revenue
10h
9 yo
Mm KMffand lifestyle

It
I Idargubma for choosing shelf slot 185014

Co
op AdvtArrangements Nat Gross

Depends
customer

emitesimie
iiiEtima elifestyles
wait
gaped MINI Store Adge
to Puma
He
lifes
In
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also pom
ans from ads
on
Ithperine lifestyle
store's
tr

Price Protection Met front P

customer

Revenue 9k He imbrued
It 8000 he will refund 1000tostudents
a
startssellinglectures
Refund par
I 8k 91
Assume
he
refunded
excess

212
Illus 22 LDR

ar customer fees Total

100 7500 75000
2
50
6 so 6000 300000
3 50
Syfy
152000

12.06.000

Revenue customer 1200000 76857

per per year 175

Revenue Booking each Yr 91 JE

41 100 68573 685700 AB AleDefeo41007 750000

TORev All 685700

482 50 6857 392850 TO Contract liar 64300

Adv Inc

yr 3 25 6857 17925
ÉÉÉ
nIepmep 50 6000 300000

AdnIne lian Revene All 42850

TO Revere 342850

trend
CIB All Do 25 6000 150000

AdvInelliab Reverse Ale121425

TORevenue 171425

213
 Illus 23 LDR
PO Total T P 1000
407
9 not
30
why subkodiya
I
ssp Itta Disgaea
500 807
94 Mob

Allocation 893 107

TP
1000 12
Goooxiqq 120

C
Ren Book after
ÉÉ Ren BookonDay
customer uses the
voucher ar it expires
ice in Meat
30days

214
 Illus 35 CLI
Computer t 34ns Extendedwarranty
Total T P 36000 2100s

sale of 34ns Extended

computer
warranty
Ssp 32000 4000

Allocation 32000
90001
ooo X
339 Book OTP of 34ns

Bookon Day

off
EE
CIB Ale Da 36000
DL
Rome
ain't
To AdvInelliab 4000

cost of Goods sold

Dard
TO Inventory 14400

dt
Day Warranty Exp Ak Dd 2000

To 2000
warranty Prox

215
 Service Concession Arrangements
Ind AS 115

Eg Gout Construction Co
He A
Gator Contractor

Payment after By

L
RenBook
Plz Construct a Bridge 3yn 80 or 1.3 Otp 34ns
8 Tact operateamaintain chargesfixed 20er Otp flours
logis Guru ur 1371
or of
Jutfor late Payment 15g
fo ReyQuote 115 er

Construction Co
Alling Entaies

ur Reable Ale Da Doer

iz To Revenue 80 er
He
Construction
Phase
He

Exp
Incurred t 3 tret Exp Otp of gym
during The dB
company
phase
Retable 20 or
9113
operation to Revenue 20 er

Phase

Otp 1 13am FA Retablo Are Iser

To Jut Ine Iser 216
13thyroid CIB Ale Da 115
To RetableAre Tiger

2 Eg is same as above except

toll
Goat will Not
pay But will give CoustonetionCo Right to Operate
for 10years Gontgane Intangible Asset to Co

41 3
Read Intangible Asset Acp my Assume the aunt

Efrain To Revenue Iger

phase

Cautnution Exp Ale Da

913
TO dB

9213 Cl B Ak Da 250crores
To Revenue 280 crores

collection
CASS me we
collected
2250 crores

a Notation Pic me
To Asset 150er
Intangible Intangible
Amortization
each Yr Iser

Inger bout Getconfused that Revenue is getting Booked twice The Revenue Booked
for receiving Intangible Asset is also getting reversed in later logis thoroughAmortization
217
Revenue is 7250 crores in above
Illus 75 6212
Pan i Refer a B for theday
93
past Iii
1 T.gg

Panfil JE Indot
Bhilwara Jabalpur

During Construction Phase

Retable FA
To Revenue 110

Construction Exp All Da 100

TO413 100

Recognise costaalating to construction

during construction phase

Doing opertion Phase

Retable FA 75 er
To Revenue 75er
tall Op Unnainte Rev 200 110 15

FA Ratable 15
TO gut The 15

Bank All Da 200

TO FAIR able 200
218
 Kolhapur Nagpur Expressway

Construction Phase
Ing
Caustoweth Exp Ale Da 170 er

To Bank Ale no er

Asset All Do 200 er

Intangible
To Revenue Loder

During op Phase

Amortizat Exp Pic Aec Da 200 er

200W
To
Intangible Asset
Reeg Await Exp over period of op

Bank Ale Da
To Revenue
Recognise Rex of Tau collection

during ap phase

219
 Step Pg26.1 unused material

Eg total Revenue sol

311
total cost to a Gol
beincurred

UI
paranoid eted
Elan x
overcast a

Elevator BookRex to the extent of cost sÉ foe

Sid incurred 401

catalobe
Elevators
He
10,06 000 301
Re Book Incurred only 5h
apter cost
completion 100
534
16.677

Total Revenue 50 00,000

Electors BadRevenue
He Got X 16.677
10L Book
6.672 Rev Book

Total Revere IF Lt 6.67 16 67 C 220

Illus 65 Clear Total Cost 40,06 ooo

e s
Elevators Other Costs
He
15,06 000 2 00,000
He
Rev upto cost Incurred only 5,09000
Y completion 201
yay x 100
TotalRevere 50.06.000
l
c

Elevators Bal Revenue

Hi
35L X 207
15L Book
7L Book

Total Revenue 15C t 7L

22L

221
Illus 79 Refer T B

222
 Ind AS 116 Leases

I t t
1 scope 2 Exemptions 3 Definition 4 Keyconcepts
of relating to
lease definition of lease

d I
a Inception B commencement C Rightto D Idinified E tease Tiffease
date Date control Asset Team Payments

iterates

contract Lesseted
5 Separation of lease 6 7
non lease components combinations Accounting
to
ax to
A InitialRecogn B Subsequent c Leases in D Remeasurement E Modificat
a for
Measurement Foreign
Measurement to lessee
currency
go
to I I
8 lessor 3d
9 Sub lo Sale gtd
leaseback
II Transition
Approach
Accounting ceases
did IQ
to do
u
C Finite D Lease E Lease
A Classification B Accounting for moan classification
lesser lease for for
where lessor Landa
Optease finjedase is Manufacturer lessor
Bldg
5 indicators Lease lease
Fin dealer

223
 Indas 116 leases
u

Two parties

r
lessor lessee
CoG owner tenant Customed

As 19 leases

RayIncome lesson Co owned lessee tenant

Enamelease
ÉÉ dunership
assyy
Ikhting.gg gtgaiirggIngke
If
arent Pie
Isaeepa Day1Reable Fa RentExp Alcoa nd
PPE AlcDd
To RentIne Pll APPEAR TO CIB
To Payable

arend Deprn Ind No Deprn

grand MoDeprn
Wendy
TOPPE grand FA
ET TO PPE
Urged FA Ratable
arena cat
TogntIne
IntexpAlepa
urend CUBAN
TO FL
TOFACRMable
Fl

To dB

224
 Ind As 116 leases

Aiding No change no classification into

Hr single aiding
Same as AS19 please Fin lease
By lessee

O NFL why Because in Op Cease As 197

I
No liable for obligation N Asset
to make payment is shown in
Bls for asset
taken on leas

For Alding of lessee Ak Itd lesson

Eg
Leafs lessee
lease Term Sars
lease Payments I lakh
pa
Disc Rate 167

PY of Future lease Payments I lakh x AFof 54ns 379079

EI 101

379079
Dad JIE Jeet Right of Ise Asset Rou Asset AleDa
LL 379079
Lease Lab
TO
Just like F L
HI
CAT
225
Greed Deprn Ale Da 75816 arend Jut Exp 37908
To Roo Asset 75816 TO lease liab 37908
379074
sans
He
Uvend Lease Ciab Ale Da 1 00,000
ceaseterm
TO 0113 1.09000

LAT FC lease liability

and pay
an ape at Toy Repayment as
1 379oz 37908 1,0010007 316987

226
Edified Asset

2ndfloor Alctook on lease Id

specificAsset
5 floors Isset
for syn

lessor can
5floors Any 1floor shift lessee
Id Asset X anytime to anyfloor

customers
supplier simp x
Egil supplier
maps
Ed Fibre 10thbps Jio FibreCentre
numbat
netffamgg rumbas
way
Engelmann 2mBPs Full Bandmith customs

Kajal exclusively for Danish

Twinkle
He 100GBPS
Mo Identified Asset Id Asset
Suppliershifts the
Internetsupply to anyone
per his
as convenience

14 Ag sweety
customer Supplier
lessee lessor YES
Fdasset no
2ndfloor s

taken on
lease a shift to 3rdfloor
as fire occurred on 2ndfloor
2ndfloor My fly still Identified Asset
is done due to fire
as shifting
not for
Ed Benefit of lessor
227
 LeaseTeam Mon
cancellable
period leaseTeams

0 lease term suis te

Ifan Day
34ns Renewal Reasonablycertain to 84s
option exercise the option

If on Day NOT
reasonably certain 5ps
to exercise the option

LeaseTeam 10years lease Team

He OnDay it estimates that
84
There is co will terminate thelease
an option to terminate
after byres
the lease after 8years
He
Non Cancellable
period On Day it estimatesthat
co will n terminate 104ns

the lease

pressed 4s lessod

lease Payments lease Rentals

Fixed lease Payments

ur up
eg Aunt Fixed Day
m
1 IL
2 112 Fixed
payments
Éy
Lease
3 is

y 1032
5 1.42 228
 In Substance fixed leasePayment
substancefixed
mining n LeaseRentals
Machinery ate Term g
leased lease Rental Depend on usage
Casey
Asset He
Ed R
ok units 102 o

10k 15Kunits 202 302

Iskunits or more 252 502

1ei.Ifpad xcesoveo.de above in substance

variable fixedpayment excess PK
leasepayment payment TO CIB
Accounting Caste when
I paid

3 Lease Incentive

Ak ignored
Jeetu
I Lakh Gerd
He
lease Ray
Teeter makes payment to the f
time
lease Incentive cash Back
gene
y e
my
I deducted Mrl
Cease incentive 801
met
from leaseRentals Lease
Rental
229
 Exercise Paice of a Purchase option

Eg Ak entered into a lease with masteama

lessee
for a
period of 5am
lesson
lease Rentals 1.5 lakhs Ak Itd also gave anas Ileana an option
are
p a

to purchase the leased asset the end of lease Team for E lol

It is reasonably certain that Mas Verma will exercise this purchaseoptio

lease Rentals
ar LR
I 1.5L
2 1.52

3 1 a

Y 152
5 1 52 t 102
d
Exercise Price ofpurchase option
this is included in LR because it is reasonably

certain that the purchase option will be exercised

Man Payment
Guaranteed Besidual Ialue GR Ak Receipt

lessor
sled
Ferran man the
Ier 4 lease Term e
By
ife syn LeaseRentals 25 Lp a

Guarantee that after 34ns 15L

230
 Day Mom Expects mom expects
to make
ur L R to use
the full paym
1 252 asset
properly under
2 252 a
i e expects He
3 25 GRY 152 zero payment
under GRU Add 151
Payment
inurz
exited Do notadd any lease
aunt of Arvin Rentals
LR
In exams
if GK is
given then
consider in
LeaseRentals

231
 Illus 30 Refer Q B directly

Illus 28
D Lease liability 850000
pitotfuture lease Payments

ii Roo Asset
PYof Lease payment 850000

A Advance Rental 10000

these are
lease incentive impacting Rou
goooo
4 Nut LL
Initial Direct Cost 1000 Because they
are not future
8 11,000 payments receipts

IE
BI Rou Asset Ale 811000
Clb Alc Da 50000 lease incentive

TO lease liability 850000

TO 913 All 10000 1000 11000 Adv Rental Initial DirectCost

Off
850000 dB 11k
EE Rau seek Rou
TO Le 850000 TOROO SOK TOMB 11K

232
Ifassume in above example there was Il of Decommy on Ruo 72000

Roo Aut E 811000 as

per above
Riot Decomms
1,36

EE ROO 8813000
dB 50000

TO 12 850000

TO CLB 11000
TO Provfor 2000
DecommG

233
Illus 31 LDR
Purgation the
lease Payments Advance Begnof each Year at
asset
will
Deprn over 10x 4046
Dayo Rou Asset 50106,000
TO Lease liability 5000,000 LAT

we GIG.tn
92CBeyn LP D F 9OUT PV
I 500000 0.9 1
2 315000 5ooaoot31 2EJTIneceutineo.q y
3 530450 575000 37 0.841

4 546364 530450 37 0.771

5 562754 0.707

6 579637 0.648

597026 0.595
7
8 0.546
619937
9 633385 0.500

10CBegn 652387 0.959

10th end 30.00.000 Purchase
Op 6.421
PY 50,00 000
Approx

Tried Depan Ak Da 1252

TOROO 1252
501
404 1251pA
234
EAT Cforlease liability
4rad Opm Jut 9.091 Repay us
go

Follow this when lease Payments the Begnof the Year

Yr
Op Repayment BE Jut 9 out cosBallarend

I 5900,000 5,0010007 45,09000 4.06800 4906800

2 4906800 315000 9591800 415699 5006899
3 5006899 530450 4476449 904671 98,81120

4
Chico

10

10th'End MBegn 304

EEE notasked

Day Roy 504 Dad Liza 5001000

500,000

arent DepIpo 27.25L

Trend JayExy 406800

406800

und
uÉ
235
 Variable lease Payments that depend on an Index or Rate

Eg Akita Kelash ltd

lessee issor
to

Lease Term Suns

lease Payments 10 Payable the end of the yr
Lp a
DF lot

Incremental clause At the end of 2nd

yr the lease payments will increase

Based on CPI Index

He
ConsumerPrice Index
Notneed to estimatefuture CPI

Day CPI 100

Actual CPI the end of 42 110
Bass
Som

Tayo Roo Asset 3790,787

TO lease 37,90 787
liability

ur Least Peut DE lol PY

1 102

2 lol

3 lol
U lol
5 102

236
 artery Depor 78157
ROO Asset 7,58 157
379078715ns LAI Cee
ur Opn Jut lot Repay cos

Jut Ale Da 379079 I 3790787 379079 101 31.69.866

artend
TOLL AK 379079 2 3169866 316987 II 23,861853

from o

Urlend Da 10.00000
Uphill 10100,000

ITepon 758157
TO ROO 758157

r2ed Jet 316987

TOU 316987

2nd 11,001000
type 11 00,000

Before Remeasurement the end of 42

Roo Asset s
2274,473 Day 24ns Deprn
lease liability 23186,853 Latur 2 end Cls

Tin Lege lid IE Cardena

Jd LL 23,86 853 Roo Asset All 348684
New 12 27 35,537 To cease liab 348684

P in U 348684
237
After Remeasurement the end of 462
Roo Asset 2274473 348684 2623157
U 348684 2735537
Tat
23,86 853
ar apn gut Rep Cls
3 2735537 114
4
5

Change in L P the end of 424 for all

and Revised Value of lease liability
for subsequentyears
9hr2end
Trend tease'Éentals
DF lot Khs
1W 3 112 101
1101007 0.909
Is
101 110100 0.826
111
104110100 0.757
346 11L

27,35 537
f
Revised value of leaseCiab Yr 2 end

238
 Alltel
Egg
Hesse
agha
lessod
Lease Team Sun
lease Payment 10Lakhs Incremental clause
pa
Every year lease payments will increase
Based on LIBOR the end of the Yr
2xCIBOR u

Actual LIBOR end of 1styr 81

Roo Asset 4357252

Dad
TO lease liab 9357252

arend C F leaseRentals DF lot Py

1 1050000 poets 0.909
2 10.52 51 0.826
1102500
1102500 57 6.751
3 1157625
4 1215506 6 683
5 1276281 0.621
4357252

Head Deprn 871950

TO ROO 871450 CAT L L
9357252 syn ur Op Jut lot Repay as
I 4357252 435725 1
10,50000 3712977
10800007
Yrend Jut 435725
IOC 181
TOLL 935725

4rad LL 1080000
Dcp 1080000 239
 Before Remeasurement
Roo the end of art 3985802 Day 4148Deprn
LL the end of 921 3712977

JE
e

d 3712977 Rou 413081

New CL WN 4126058 TO LL 913081

Remeasiementineudofare
After 0 44
3485802 413081
389888309
Rou the end of art
LL 3712977 413081 4126658
New LAT

Revised Cl An endof lur

g Yr C F leaserentals par not P

1166960 10.84 81 0.969
L 1259712 0.826

ML
Yr y 1366989
0 751

44125 14693280 0683

4126058

Forty when I in lease Payment is Based on Index Day Index is taken as Base
No compounding is Done in lease
payment
Rate Day Rate is applied forcompounds
240
each Year's leaseRental
Illus 32 CPR
Hint Ones 1stpara lastline
Hint Assumption lease payments Begn of the yr

01 01 17 Rou Asset 454595

TO cease liability 454595

Dan CPI 120 Base

conf Caen of c Day is Base
CPI of 120 itself spondrate
Yr Bega L p p
11 12
01161 17 1,001000
41412 120
01 01 18 1 00,000 0.952
19 1,00000 0.907
20 1 00,000 0.863

21 1,00 000 0.823

PY 454595

01 01 20 BeforeRemeasurement
RooAsset on 01 01 20 een 181838
Ll on 01 01 20 m2 195238

went
RE an cat Begnafar
01101117 959595 Repay Bal Jut 51 Cabal
ur Apn
Less 34nsDeprn 272757 01 01 17 959595 1,001000 354595 17730 372325
454595 3 285941
5 18 372325 1000007272325 13616
01 01 20 181838 01101119 285941 Gooooo 185941 9297 195230
01 01 20 195238 cut31 1219
He
241
01 01 20
Increase Decrease in IL on 0101 20

Old LL 195238
JE
New Le Can3 491382

Min LL 296144 ou Asset 296144

TO U 296144

AfterRemeasurement on a 01120 new cat 5am

LL on 01101120 195238 296144 491382

ROU on 01 01 20 181838 296144 977982

DeprnaySyn

an New Revised 4 Based on change in CPI from 120 to 125

Enid Renewal option exercised Estchange
r LP Bega DF 167 PY
01 01 20 104167 12
15
01 01 21 104167 0.943
01 01 22 114583 EI 0.890
01 01 23 114583 0.840

01 01 24 114583 0792
491382 approx
U
Remeasurement
L T change New Disc
É up change Rate

242
 Illus 32 Steps Summary

Rogo Day

Remeasurement oil01120
01161120 Bef Rem I KE
no so I in leg lets um
É TO U

Roo
01 01 20 After Rem LL

243
Q2 MTP Rtp Ipp
Rao 357613
Daud
to u
351613

only this
Begnoftr3_ all in a
JE
and Le lamp sous Begging was

Y
I
asked
menu can TO LL 22854

P in LL
317
LP end of the
and cat year
an ht 9.51 Repay ces
op
1 35,613 33403 56000 329016
2 329016 31257 156000 309273
He
482end 983Beg

Revised Crew LD Index280 Joi in est of c t

and No
ca'd onlychange
est of L P has changed
Yr Lip Cary 9 s7 Py
3 60200 56oooxzggyD.F
Y 60200

5 60200
6 60200
7
8 U

g u

10
327127
244
 Illus Go AR
in

Dayd ROU Asset 72944044

He
iii Historical
to cease liability 72944044 NonMonetary Rate

ab Remeasure
10000 X AF of 548s 57 a curate
93294.77 ay
Monetary
2au
X 7681
Take Jut fifty AugRate
72944044
E
Tried Deprn 588809
TOROUAsset 588809

Erlend Jut Exp pic 149385

TO LL 149385

E
LL 700000
Tried
TOY 700000

E
Tflend Exch loss Pll 88771
To LL 88771

245
 LAT LC in
WII Repatmentfs
ur
opn 7 Int 5 as 7
I 93295 2165 10,000 35460

Op Rate Aig Rate rate cisrate

7681 7691 7701 7701
FF 00,000 24 82,200
729440447149385W
2393429
Actual
A in U 2YgII Diff
agange

Ex loss PIC 88771

TOU 88771

246
 Lease modification teamsmendment It is diff from
lease Amendment change in Est

Consideration lease Payments I I

Lease Team t
De Reeg Aiding
Area T t a
Scape oneextrafloor
taken or one
floor cancelled

Blue Box Accounting is same as Remeasurement

In modification we use
Revised Disc Rate

247
 Illus 34 LDR LP the end
Row 736009
Day
TO U 736009
ILY AF of cogs ay

At the Begn of 487 Before modification 736069

Roo 294404 7360099 Gyu Depp 91
u 346511
CanD

ID CAT LD
ur Jut
Opn 67 Repay as
I 736009
2

3
y
5
6 346511

Increase Decrease in IL on Madh Begnof9 7

Old LL 346571
JE
New IL WM 597130 250619
ROY
250619
P in LL 250619

After Maan Cattle

Bagh of ur 7 Depth over 8years

Roo 294409 250619 saggy

Us 3196511 250619 597130
cat for Pyrs 7

248
cured Revised CC Con Mod New Disc Rate
Ur LP DE 71 PY

7 I L
8 IL
9 IL
10
12
11
IL
12 12
ETIM13 IL
14 12

597130

249
 Illus 35 LDR
ROU 368004
Day
TOLL 368004

sokXAFof1Oyn 6t.p.a
moaned 1 De Raag
At the Begn of ur 6 Before Madh
De Reeg zgseoouxs.to

ROU Asset 184002 3680044 5am Deprn

Lease Lab 210618 WMD

WMD CATCH
ur Opn Jut at Repayment cos
I 368009
2

3
y
5 210618

Rp 9
Mad Before sooo sq 50000
De Recog Csq.tt 1250001 Proportionate
Bal 250059 ft 25000

250
De Recognition Alding I in Route it Proportionately 6thYr Begu

Particulars Before 5000soft De Reagh50597 BalfatterDe Recog

184002 92061
Roo Asset
184002 507
De Recognition always
at carry Aunt

Lease liab 210618 105309

210618 501 and

0 that should have beenreduced

ad De Reg portion of ILProf5 1
Mr Caffrey DF MEy.Old.p
6 25000
7 25000
8 25000
9 25000
10 25000
105309

JE for De Recogn
LL Alc Dd 105309

TOROU Alc 92001

TO PILAte 13308 Why Pll Disposal pe Gain lossdata
hat
Crain

After nniednCBegnofcf
fDe ReagBatBeforeehangeinl.p for
retainedspace
ROU 184002 92001 92001
LL 210618 105309 105309
251
mad Mo2 Bedpans Expensive M in L P Canady

J Efforrnodnno 2

105309 After De Reagh Rou 248 75

129884 an 3 TOIL 24575
µ
Min LL 24575

conf Revised leaseliabYD.F

Yr LP sIttkae.py
6 3011

30k
8 30k
q 30k
10 3012
129884

After Ahad no 2 Beguof 4r6

ROU 92001 116576 Depm over 54ns
24575
I 105309 24575 129884 cat 57 for syn

Cpr maniple Madh Always Do De Recogn 1st

1135
Day ROE

Ém Rou Prop Diff PK

Derecog value 4CProp Tablekesaath old rate
After Be Recogn Matlab
Ae
Mod
Hod No 2 L P Increase k other
Revised Il Man
Min LL 9dL_Hw Disc Rate De Reagh
He De Re
Afternoon I ke rate
252
new rate
Illus 37 LDR

Day ROO 736009

TOLL 736009

ILXAFafiOyn 6t.J

Thad No I Regh
De Begin of 46
Before Mod
Roo 368004 736009454ns Deprn
LL 421236
In
LAT
ur Opn Tut at Repay cis
I 736009
2

3
y
5 421236

Yr 6Begn
last24ns i e 4092410 lease cancelled
De Recagnaping
Before Ign De Recogn
Roo 368004 147202
368009
45

If LL 921236 1539357
and

253
ylang Ra 466th Beg
6f.d P
utah rend up pp
9 1,00000 0 792

5Mur o 1,00000 0.747

153935

CDe Recog
EE Madh
L Ale Da 153935
TOROK Ale 147202
TO PIL 67330

After De Recog 426 Begn

Roo Asset 368009471472027 220802

LL 42123667153935 267301

Mod No 2 Min Scope Min c p

1ÉÉ Afterperecay 267301 Roo Ale Da 126346

New CL an 3 393697 TO u 126346

M in IL 126346

After Mdd Mo 2
Deprn over 393
ROU Asset 220802 126346 347148
LL 267301 126346 393697 cat 77
254
 3
Revised CL N
Yr LP DF 71 PY
6 15L
7 I 5L
8 1 52
393647

t
IY old Disc Rate vs new Disc Rate

Remeasurement modification Antena

Cest Change pleaseTermty
Area I
Scope
Detrecogn All'other
2 F Est change L P Est moan Mod
H
indole change
it to 4
Based an M Ll be De Recog Mall
New Disc Rate Based on New
Old DiscRate Of Disc DiscRate
Rate
Note If Both LTU L P Est change
then New Disc Rate

255
 Lesson Books

Gp to
lease lease
chick concept Book
Indicators

Finance lease lesser

Roasts met Inst Patry

II
Day cease
He

TO PPE C c.A Cinemae

Important Teams
Guess Investment Lease Rentals
I I
He
VARY

without Present includes Gry UnguaranteedResidualvalue

He
Value Residual GRI BHUARY
value
100
to

R
If My Inst
Caitupy
I UGRy
with PY
Loyof Mfmist

3 Unearned Finance Income Gross Inst G Met Insist

Day s NotRecorded
LAT Jut coin Otp Recorded
Day Disclose

256
 lease Rentals 10 excl GRID
YEE p.a
lease Team 54ns
Residual value 12 ARY 80k 09724 2012
DF lot

PPE carrying Ant 95,06 000

Pass J E on
Day also Pass J E for Yr end
Show the Aunt of unearned finance Income

Lease Retable 3852879 Cnet Inst

Dayf
Pll AK Da 647121
TO PPE Alc 45,001000

Gross Investment Lease Rentals Uan

aritheat Py find GR
Fff 80000 t 20000

51 00,000

Met Investment Pu of GrossIncest I 3852879

LR lot PV
End Def

2 10L 0826 4 8011 xD Fof5Myr lot

3 10L 0757 4720k x DFofsthyr lot

Y 10L 0683
5M LOL 0621
5th 80KEUR
0.64
5M 20K UAN 0.621 257
3852879
 Unearned FI GI MI
57,001000673852879
1247121

CAT FA lease Retable Receive

Income
Yr Opn Jut 107 Repay 6
I 3852879 385288 104 3238167
2

3
y
5

Lease Retable CFA 385288

Greif
To Tut Income 385288

Arend CIB 10,00 000

TO cease Re able 1900.000

258
 Illus 38 LDR
lesson L
Indicators
Ownership X
Porch Op X

Lease Term X
X 112547 But cease term is non
major life
PV of L P Subs covers Fair value Condition net Referworking Below

Specialised Nature X

Pll of 150004 AF of 10yrs 10.0787 t 30k x D f of 10thyr 10.0787

Lp
lease Rentals 103345
C GRIDUGH

x 100 93.10 approx

5193,3
µ It is a Fin lease

smutasted
dealer manufacturer Not his core Bush
Casf where lessor is not a

DÉITE ease Reable Are Da 1,11 ooo That Imist and

TO PPE carry 9 Aunt 100000
TO PIL BIL

af Met Insist PV of LP t PV of warm

I5KxAFof1Oyrs 10.0787 H 30000 X D F of 10Myr 10.0787 4720000xD f of cony
10.0781

com cat lease Reable receive

At 10.078 pigs as
graph
111000 11187 150007 107187 259
wed
yeaserenable
11187
TO get Ine

CIB 15000

TO lease Retable 15000

2 where lessor is a Dealer Inanufaiturer

It's his Busa Trading Burn
pig Purchase 100 Sales 120

JE Gp
Lease Relable 1 11,000
Dayf
COGS All Da 92344 C notPPE 4 Prof UART100000 7658

TO Inventory 1,001000
TO Sales Revenue 103344 io.o tot
met IomstfypyoffqpnflyDFof10thur
CAD
1 11,000 I 7656

yr end Alding Same as Case cogs923my Iozzyy

y g

260
Ques 5 Cepr Fin lease Specialised Mature Asset Dealer manufacture
lessor case
He
i It his Bush
Cease Retable Net Inst
Dayd 150000
COGS 92526 IL gift
TOInventoyf c.A 100000
To Revenue NetInest Pyofuan
192526 1 SL G 7479

PIC
TO C B 2500

Tft Imist 57500 x AF of bus 10.197

G 10000 X D F of 3rd yr 10.191 uan

150000 approx

Yr
lend lease Retable 15285 IF Rename 6243
TO Int Ine 15285 TO Int Ine 6243

CIB 57800 CIB 57800

TO L R 57500 TO L R 57500

ÉÉeud extra Entry

Lease Retable 10983 Asset return Backs to lessor

42nd
TO Int Ine 10983 Inventory Ale Da 10012
To Lease Retable 10012
dB
to 2 R 57500
261
 Receive
MI lease Retable grave
Yr Opm Tat 10.197 Repayment as
I mo 15285 575002 107785
2 107785 10983 57500 61268
3 61268 6243 57500 10012 approx
oath Ury
Yusiderd

Quest Cpr has to recover this in

lease Rentals pressed
Px teams Assumptions

Asset Value 800,000

and
I I
PY of lease Rentals
Pyotuary
BH 50kt DE of3rd yr lot
762435 37565
He

Lease
payment
each Yr

Py of L P lease Rentals x AF of 3ps lot ur cR DF cat

each Yr
I 306593

u 2 306893

762435 x x 2 4868 3 306593

pus762435

306593 lease Rentals each yr

I

262
 Check whether 02 or FL

Ownership X
Porch Op x

LT CrnajarPart X
Puof L R substantially FY 7 x 100 95 3 r
4280
Fin lease

Specialized Mature X

I earned Einance Incomers GIE N'I

96977948,00000
169779

Grass Imist Ca tissistant

969779

PilafCR H Pllof VARY

Met Inst MI 306593 X AF of 34ns lot

50K X D F of 3rdyr lot

8 00,000

263
 Subleases
Oplease
Siddhant egg Fin lease

Ease
or
T
Intermediate
lessor
it lessee 2k
FL
sub lease

I lessee c Jeetu

264
 Sale leaseback

MF
Sane
Lucky
Bleyer lessor

CA
sayin.IT
I
SOK

FU FFS ar
s.p E75er

leaseback
I
cease 104ns
LP
loop a
DF lot

Sale le cease Bark

JE In the Books of Ak H steeled lessee

Catubined
Entry
BSE
Bank Ale Da 75 er CLB All Da 75 er

ToPPEAlcC c.A so er Roo Ale Da

61.440 at for gig
TO PIL 25er
TO PPE SO er

2 lease lessee to L L 61 user

Roo Ale Da 61 45 er
To PIL 6331174.520

TO LL 61 45 er tic
ing CA u FY
Ocr X A F of 109ns lot be soar 75
i
DX
Prop Rou
265
 Extra Proof logic of Profit Ofa

Sale Paofit
50 or 25er
9.03 4.52 approx

Effective sale
sour 440He97
He
Recorded
Sale
again

EI Sare cease Back off mkt teams

sale
Ily Bayer lessor
severflessee
it suer
FY 75er
sp goa
leaseback
Scam component 158 c to yours DF lot
loadtaken
Dontuse LD My 12
up.a
this term in PY of L P 12cry AF of 104ns lot
exam Iser loan Repay
73.73 er
458 73 lease payments R
In exam use
off raktterous penny Blf
Component

266
Akita loan taken Sale a lease Baek

CIB Ale Da Iser loan component

To loan taken Iser
Finciaby

LB Ale Da 75er
Roo Ale Da 39 15 seer 75 or
58.73

TO PPE 50 er
TO LL 732
73 58.73
73 73 15er

TO PIL BH 5 42

267
 Illus 4514012 In the Books of Selled lessee

off Maletterm a SP F
loan component 3024271
3,001000

FE
Wan Camp
MD CIB AK Dd 3,001000
TO Fin lids 3,001000

Sale a leaseback
CIB AK Da 30 271 cA fv
Roo Ale Da 663272
X Izggq
TO PPE 15.00.000
TO LL 1493889 1193889

2LxAFof20yn 12I.J 632

TO PIL 669383

artery Depin 33164

TOROO Asset 33169
6632721204ns

urlend EL untuned FL LATAM 2

Jut EXP
Greif
36000
14326743267
TO IL get Exp 36000
to FL
LL 159836
FL 40169
TOCK 159836 268
TOMB 90164
 a CAT Lease Ciab and cat Fc

ar Opn Jut 121 Repay Cis graph Iat 121 Repay cos

I 1193889 143267 159836 1177320 I 300000 36000 401697295836

IF I30 Bifurcation of Repayment 2.00.000

a
FL
21 1193889 21
1493809 82
3,4

1598360 40169

Purchase Price 30143,1 270

Lease loanCamp loanGiven
Bayer lessor Op
A Team loan Comp
Day cost
loan givenCFA Recognise
ppe

FA loan Given 32 PPE ALDI 272

TO CIB 3L TO CIB 272

lesson 22 me
leasealding
this is Op lease
DayI No lease entry L R
159836 40164
CIB 21 159836
4rad
TO lease Rent 21 159836

36000 1113 40164

YreifIIT FA
TOfutgne 36000 TO FA 40164
269
CAT FA Intgname Receive
ur open ht 121 Repays Cls
I 300am 36000 40164 295836

270
 Transition Approach
Indias
Aggggendas
17 Ind AS116

Not applicable 3 Approaches

He
As no change in
Illust 46
Accounting

Illus 46 LDR lease Date 1.04.17 Ind AS116 Apply 70109.19

Éfproaen 1 Fall Retrospective Approach Ind As 116 1.04.19 19 20

18 Roo AssetAll De 320244 under this comparative period

approach apply on 04.18
ransition Ret Earnings AK Dd 177660
18 19
differences To U All 338010
Earnings
pet
Ind As 116
It 1,417 010417
12ty.D.F
2,09000 XAFof3yn

980366 Ike
value of Roo on 01 04 18 value of Ll on 01 04 18
He 43
848,9366
480366 ly and ur apn Jut 127 Rep Cls
31.3.18 980366 57644 2000007338010
320244
He

24nsDepor 2 Love us
LAT

271
 Approach No2 Modified Retrospective Approach Comparative Period X

Ind AS 116 1.4.19

Interntinet Alternatives
419 Rou Ale Da 165790 Prospective Alding
Redcoad Prof Remaining
R E AK Dd 16028 Rova Le an 01.04.19

TOLL 181818 LP New Disc Rate

01 04 19 ROU 8
H Mopiffan Day
Prospective Approach
Toll
Rou Retrosp Approach NewDisc
Rate 2LxDFoflyr 107 J
u new Disc Rate

10
01117 2LxAFof3yn 31 3 20 Deprn 181818
997370
TOROU 1818818

LensDeprn 3315807

497370 43 31 3 20 Tut Exp 18182

165790 181882
non 19 Toll
31 3 20 LL 200000
TOCIB 200000
refill 31 3 20 Deprn 165790
TOROU 1657590

L2
read 31 3 20 IutExp 18182
toll 18182 WII
200000 Ur Gpa Tut 10 Repay b
109113 200000 31.3.20 181818 18182 217 0

272
 Separation of lease non lease Components

EID Bldg Equipment

LT Suns
Lease 20 Lp a
Rentals

Bldg lease Emp Lamp No paactical expidient

camp He
u
available here
Standalone LP Standalone lip
I
ftp.a 101pA
10
201 15 201
28 28
a
Kip
He
a
sup a

RoofBldg p
Rou Camp
p.ly
TO LL TU

Cad Dained L T 5yd DF lot

Eff up 2olpa
Mon lease
lease LP
Camp camp 201pA
s

Cad
sup Fcpa ftp a
15L a 54 p a no lease
Allocation p
201 18237 201 6124 Aiding
He
Rou s a
Exp Moniding
tou toy 273
as a when paid
Note Ind As 116 gives option to apply practical expidient
He

No need to
separate lease Non lease comp

Assume only car was taken on lease for 2olp.a.CLR

apmlicable till June2022

310th
Canid d s Not Relevant Anymore

274
Illust 57 LDR CR
pea
70k Ueda bana rake
Lease Camp shopping man 4 allocation
nai
Non Lease Camp Facilities irrelevant
I
total 1 7Lp a

Shappsmall facilities

SLP 1 22pm 80k p a

102000 68000
Allocation
noooo
00037
He
He
Tot to Pll
Day Rov 587420
9 when incurred
TOU 587420
Lrt Guns 102000 X AFofguns 1013

275
 FRwith All a Financial Instruments Ind As 32,109 107

By CA Aakash Kandor very Easy

16 24mks each
Ind AS 32 attempt
te t
t Itt
t 2 Fixed to't 3 Compound
Definitions Fixed Financial
Test Instruments
A Financial B Financial C Financial D Equity
Instruments Asset liability

Ind As 109
I I
1 Classification 2 classification 3 Classification 4 Initial measurement of
of of FA FL
Financial Financial
Asset
liability
A Businessmodel
Test
B CCFC
test Incirlik I Initial meds
as
per Fair
value method
c
g lo A Fairvalue B Fairlane c compound
owes transaction
Transaction Financial
Paice Price Instrument
Pre Existing
Relationship

l I
Ytrhangition 2 with 3 Conversion
Transaction or
cost cost Early
settlement
of CFI

5 Subseqtuent Measurement 6 Accotinting of 7 Reclassificationof FAU FL

of FA UFL Equity
Instrument

276
 I
8 DE Recognitionof 9 De Recognitionof
FA Financial lials
I
AlEntity Substantially B Entity Substantially cEntityneither
transfers Risks Rewards Retains all transfers nor
Risks Rewards retainsRisks2
Fall Partial Rewards
De Recagn De Recogn
Not Retained
Retained control
control

10 14m12s
301
VII I I Derivatives
10 Modification ii Regularway 12 Impairment B
purchase or
A Incase of B Incase of sale of
Borrower lender FA

Q
IQ
220
th y Jay
ÉMÉ 15 16 Financial Guarantee
bedded HedgeAccounting
Deaivatives

277
 Ind As 32 FI Presentation

Definitions cash

Financial Asset It is
any asset Equity Instruments of another
that Instin RelCo EqShares
is entity eg

D ContractualRight to receive
cash
eg Das
ie ContractualRight to receive

EquityJustruments of another
entity eg Inestin ComDeb
contractual Right to receive
any other Financial Asset
TR promisesto
eg

Contract to exchange
givefginstead
FA Fc underhtFatiomurable conditions
r

Eartha atianay FAKE

DEF Referen
Cash Bal FA
Trade Relables FA c i

Inventory Not a FA
PPE Not a FA
Loans Advances Given FA c Ci
Invest in Eqshares of Infosys Hd FA b

Invest in Bonds FA c i

Investin Convertible Bonds Jut cash a CCD

FA
Princip Egshares J s c Cio
FA CCD
Inst in Pref Sharest.BY F

278
 Gold contractual right X Not a FA

Inst in Gold Bonds FA c Ci

Imelda
receive
Prepaid Exps You will Goods Service Not a FA
not cash

Prepaid Exp
Refundable cash FA c Ci
service refuse
a
Trade Relable a land Not a FA
Eqshares of Ret Ltd FA clip
Debentureof Rel Hd FA cCiii

Bills Reable FA Cli

Inst in Subs J.v Associate Motin Scopeof

CIndAS25 0.111

IncomeTax Refund StatutoryRight

Notin Scope of FI

279
 1 Contractual obligation to

Itis deliver cash

Definition of Financial liability any
Baby ii contractual obligation to
that is
delixed any other FA

Is 9h Contract to exch FA IFL under

potentially unfavourable conditions
Relshare p Relshare f
After3ms wins E 10,000 contract to deliver ourgshares
Every mouths who is in which position gym
istmouth sarthak favourable FA
Fear not Defnpef
gagged Bharat unfavourable 1 Fc

FL ad
D Trade Payables
2 loan taken FL ali
a lil
outstanding salary future as cash delived FL
4 Advance Income future service deliver Mota FL
5 Adx Ine contrautcancelled Adu refund tostudents FL a Ci
It cash FL Ci
6 Debenture Issue a
Prince cash

III convertibleDeb Issued

Lennep
Incan Ignore Fut
Ensnares Count Equity

8 Issue Equity shares Cowin Equity

a ConvertiblePref Issue Dix Ignore
Prine Eg shares count Equity
a Trade Payable Land Mota FL
Bill Retable FL a Cic
9 CFA
Akita own Eq Share Equity
Akitdeqshare
113 IT
notcovered in FI
Payable Statutory obligation

280
 Own
Eg Eq Shares deliver Equity Off

Issues Debenture

masons
Redeemable
l s

Jut Princip Jut Princip

H I
cash cash a own E9 Shares
q EgityEx
t.ec Tmoundfinancial
CFI
Instrument CFI
ME

to
ftawt
singledustmmp.gg

1
Redeemable Compulsorily Convertible
c s
Dividend
Divided Paddy
Assume
Princip
Discretionary mandatory
mandatory own Eq Shares
Assume Hi Cash Eghity
Cash If nothingmentioned

ftp.y
No obligation Hi FL
Nota Fl 4hL
F

l
I 281
If Earelenerinelgggcereret
Conversion It the option conversionfat'the option
of the holder of the issued
c
e s Tut Princip
Jut Princip H Issuer at its own

jay
cash will CAN avoidpaying
Essuerattts own will cannot
cash avoid cash I cash
F E Eying

my FI

Har Cimestor
nichcefeltd.gr
I

Danish a
s
Jat
He Prine
CashReceive Eqshares of Relitd
He

FA dit FA c Cio

TA
Compound Fin Just Pointof view of Issued
re
For Holder There is No conceptof CFI Holder FIM

282
 Fixed to fixed test
Eg Issued Compulsory Cony Debt
to
Jut Princip

Own Iq Shares
cash
He

FL Provided it meets Equity

Fixed to FixedTest

Cont
I Eastyares
7
No of Deb No of equity
Convert shares Issue

Day Fixed Day fixed

5000eg shares
eg 500 Deb eg
If FLF Test not met then Principal will be F L

Defnof Equity
2 conditions Both should be met

Co Leid issue F2F Test is

own equityshares met
Hi
If nothing is mentioned
always assume
that F2F Test is met

283
 Indusia classification
FÉÉÉAfI
Ault

Classification of iIhoce

A
FA.IE FUTPL Ir

Business model Test a Hold

u Hold or Trade Entity specific Test
Entity as a whole
Trade

Loutraitual Cashflow characteristics Iest CcFc Test tn ofmet

FA FA Instrument
17 A specific test
Jut a Principal
Cif
applicable
Intention to earn
only
these 2 cash flows
Then CCFC met

case 1
tut r Cee net
a
Inst in Deb Princip r
9
CFA stieg
E3 Joe not met

Igt Priya catcapy

Jut X
eg Inst in Eq Shares et
an Dix r
In case of eq a Princip recovery any gate
cue never captain caploss
met

284
 eg Éerosticoupon Bond tux raft
Prince

Irina Fall

Bush Model
H I

1 notread
IMAMI imed Informed
line
Jatt Pr Tutt Pry FUTPL
Acn F FITOCCR
Ftp

Alternatively
irrevocable option
to use Foto CI CMR

Classifigationoffinacialiab
Only Acm Except in few casesgivenby IndAs for FL we use FXTPL
eg Derivatives Fin Guarantee Discussed later

285
 Initialmeasoffaare

It netted
AKITA Borrows from Dena Bank F 100 code 101 for furs
Borrower FL Lender FA

I Borrower Fc
Total Jat Exp
480 I 2 3 4 5 50
inflow ro lo Cio 10 10

100 or 100

Total Inflow 100

a
outflow9501
Jut Exp 50

Alternative way of giving loan

Facevalue
y
At Hel Borrow from Dena Bank incr 8 coupon Jut
Issued 107 disc

BIEN 2 3 4 5 Total Exp

inflow
o 8
90 o o

roo
say
Total inflow 90
Total outflow 141
net exp 50

286
 In reality 8 si of dikhane ka Jut hai Coupon
Ed EIR Effective act int combo of Truth disc Prem
Interest
Rate
I

As As Borrower Ak Hd
per

CIB Ale Da 90 er
Dad
DisconIssue
parted
TO FL loan 100 Cr this wow apply in
Ind As as disc is
nothing
4rad Jut Exp All 8 g fat which should be
yay
but
y Booked over the period of

5 yrs

Ind AS FA IFL ACM Method

He Fair value
Day
Amortised
cost Measure Amortized
method
ared cost

what is Fair value

s Fair value Pt of future cashflows discounted ER

Effectivity
Rate
Coup I
Cash flows
sq
Step Fair value of FA FL EE.mn
period
Step ER

Step CAT LoanAmortization

table

287
 Steph cash flows Eh

Ur CI

o 90 Inflow

couponTut
p.a outlaw
1 5 8
SMyrend 100 outflow Princip

M of M
t.hn
M
Sty Exact
g
Fair value Transaction Paice Assume
Paul inflow outflow
Fair value 90 Assume

Step EIR compute

FV PV of FCF EIR
He
Daul
C F

90 Pilot FCF EIR

1

Case Assume a 9 ur Fire D F at Py

8 AFof Sys
9 6
100 XD Fof 5Myr 99 2 y
3 8 0
8 3.89 100 X 0.65 4 8 0
96.12 5 8
100 H
Annuity
factor

288
Case 2 2 111
8xAFof8yrs 11Y.H
100 XD'FoffMyr 117
88.91

By using Interpolation
9 96.12490 11 ay
X
96.12 488.9
10 to
approx
g't disc

Steph LAT loan Amoatization Table FL

Fairlane M Amortised
ur open Iut
ToI1x.l Cls
cost
Repayment
I go 9 63 8 91.63
2 91.63 9 80 8 93.43
3 93 43 10 8 95 43
95 43 10.21 8 97 64
y
g 97 64 10.45 8 O App
approxadj
O1
100

50
TetBook
approx

289
ECenaas

Dad CIB Ale Da 90

TO FL 90
Fair value

Uriend JutExp AK Dr 9 63
TO F L 9 63

trend FLAK Da 8
TO CIB 8

cash flows EI
112 Stef
50kt 10 Prem Off
Yr C F Totaloutflow 5000
0 55000 outflow total inflow
72501
1 3 5000 a inflow coupon Metinflow 17501
p JutIncome
3 57500 inflow Prine
50kt 157 Preen

PYof FCF ER
Stg Fu of FA FY a
X
FY Tr Price
55000

290
 step ELI
FY PV of FCF ECR
cage
55000 PX of FCF Icy

2 117
5000 X AF of 3yd lit
57500 XD F of3rdyr 117

54262 approx

2 107
5000 X AF of 3yd lot
57500 X D F of3rdyr 107
55635
approx

Interpolation 10 55635155000 X 11 104

556356 54262

10
477
approtmstepIYICF.AT Income
Jut
scoupofreaeiIy.Opntfaitiame7Iut
o.ut't Repayment
I 55000 5759 5000 58759
2 85759 5838 5000 56597
3 56597 5926 5000 o
3 Capprog 57500

17501approx
Jut Income

291
 FAT
EE Fairlane
Dad pas 55000
TO CIB 55000

9rad F A Ale Da 5754

To Tut Inc 5759

Greif CIB Aleph 5000

TO F A AK 5000

EE OI
Step cashflows F LI Daud El IP
Yr CF 90k
g 90000 inflow 5000 outflow 8010
To FL 90k
1 5 8000
p.a outflow coupon G cost operating
5M yr C00,000 outflow Prince AXEL 5000
TOMB 5000

GF85000
OF
Total inflow 90000
Total outflow as 145000 PEE CASSA Da Bal
Direct
5000 40000
11001001 Explaype Bae Agt
To cost5000
Netoutflow xp 55000 Disc noooo
Asset

Cayton 40000 iab as ca Bal

Direct Exp cap Da Bal leggy

292
 Fx Pv of ice Elk
Step Fair a effin Lab
Tr Price Tr cost
FYI
90,000 E 5000
FUOfFC 85000

Step EUI
Fu Pu of FCF
EYE
85000 PVof FCF

Assume a lot

iot.H
8000XAFof5yrs

1,00 000X DF of 5thyr lot

92418

Assume a 121
8000 X AF of 54ns 121
1,00 000X DF of 5thyr 127
85581

Assume act 137

8000 X AF of 54ns 131
1 00,000X DF of 5thyr 134
82414

Byinterpolation 12 13 12 1
8,534 12 4 x

12.18 approx

293
 Steph CAI CF.LT
ur
open Fair Jut 12.187 Repay Cls
I 85000 10353 8000 87353
2
HE
3
y
5
55000

J E

Jay CIB Alc 90000

TO FL 90000
Dan Ima gooo
FEI 5000
toy 5000

artery Jut Exp 10353

top 20353

FL All 8000
Urfend
RUB 8000

294
 If in above case we solvefrom F A point of view then what will
be the treatment of Ta Cost

OE
CF CFAT I
Stp Day
Mr C F 90000
TO 43
Infest
Tr Cost
I

Incurr
ÉPÉE Aka 5000
FA 5000

tII.pIce tr.cost FA Cray l 95000

90000 475000
95000

If Summary for Transaction Cost

For FL For F A
HI N
Deduct Tr Cost Add Tr Cost
to F A on
from FL an
Day
Dan

off what is ER coupon Ht

EE Tr Cost
Elp

me

295
Illus_39Altdstep
C.F FL
ar

soEisgtmetinflow1
o iooo0

5
5Clooop.a
outflow coupon
yrend 10000 outflow print

step F.v of F L
FY T.PE Tr Cost
of FL
10000 500

9500

Step É Ece ER
He

9500 PVOf FCF act

D 107
10000

2 127
9279

Interpolation 11 39
approx

296
Steph CAT CFI JatEp pay
ur Opn Fairlane Jut 11391 Repayment as

31 3 x2 9800 1082 1000 9582

X3 9582 1091 1000 9673
XY 9673 1102 1000 9775
XS 9775 1113 1000 9888
XG 9888 1126 1000 o
10000
in

Eat
EE Otoh X1 dB 10000
TO FC 10000

Tr Cost
of oh Xl FL
Tock soo

31 3 2 Fat Exp 1082

TO Fl 1082

31 3 2 FC 1000
TOCCB 1000

297
 Msperqtr
If
PyoffLFEEX

298
Illust 40 4K

SED CI F I
ar Trost
IF
o 10,000 Inflow 500 Outflow 9500
1 2 Jut a Prine
coupon Huf CashoutflowTable straysprepare
I whenever
atrey Yearly Camp Princip ispaid
Ewe in Installment
coupon Face value
and cashautfloyftaye.cat
ane SETI ca
ftp.qtr epumgI
pn.net

30.06 x 9500710000 300 3003 10000

30 09 1 10000 300 62500 300 7500
31 12 1 7500 225 225 7500
31 03 2 7500 225 2500 225 5000
30.06 X2 5000 150 150 5000
30.09 x2 5000 150 Ggg 150 2500
31 12 2 2500 75 78 2500
31 03 73 2500 75 xx 75

OE
qptgirenfsstintakeFvet.p
Hi
Step CF Pxofpcp why
Lttftpetr.cost mecuid understand
of FL this later

10,0006500
9500

299
step EICGivenJ16.60Yp.a
4.15
pg
step and
Steph LAT F I
OtrendedTopntITutt.is51q Repaint cos

30.06 x 9500 394 300 9594

30 09 1 9594 398 2800 7192
31 12 1 7192 298 225 7266
31 03 2 7266 302 2725 9842
30 06 72 4842 201 150 9893
30.09 X2 4893 203 2650 2446
31 12 X2 2446 102 757 2472
31 03 X3 2575 O
2472 103

IE notasked

EI
Ocon X1 10113 ACC Da 10,000
TO FL 10,000
Of 09 1 FL Tr Cost
Toa soo

30.06.41 JutExp 394 30.06 x FL 300

TO FL 394 TOCK 300

300
 A Method

Fair Value tr Price Fair value pv of FCF

I EI
Because EIR is availableAtop there is already some
pre existing relationship

CPR
illust
5
Ed I
Divaushs Rutnik
lessee Clessoat
tenant original owner

Rent 2 10
Lp a
SecDeposit 7401 at Jut
Refundable
gives depositigessor
lessee
FaCsecDep
Ta CIB
lessorrefundsthe
tarlessee depositto
lessee

Attentive terms
Rent GL
pa
Sec Dep 801 07 Jut
Refundable

301
step Cf
Step Fy offa Plot
OF Egg

step Diff Bt nu

step CA Eland
It In pepytherin
Opn Cfa guy as

302
 Cicust337
Ed
Relationships lessor le lessee
Alta lessee F.A
step Cf
ar

0 lol Coutflow
1 5 inflow coupon Jutfree
gther lol Cinflow prince

FY of FA FY PY of FCF lessee
Step ELIF JE Alta

iouxp.eofs.my my ftp.epcmaesgygzy
101 0.567427 Prepaid leaseRenta432573

5,67 427 To
4,870,00 ooo H
Sqn
newstep Otp
guy tf to
St Diff Btw T.pk Fair value pie
IOLE 567427
aloft
932573 Prepaid lease Rent wloftover syn Ind AS116
RouAsset

Steph Elr Given

steps CATES see Deposit Itc Rear

ur Fairxalue Jut 121 Repayment Cls
Opr
I 567427 68091 635518
2 635518 76262 711780
3 711780 85414 E 797194
Y 797194 95663 7 892857
5 892857 107143 10.00.000

303
É Day Alta lessee IndAslog
SecDep CFA ALDS 567427
Ind As116 leases loft over syn
yay
w
LR xp
KYM
Rou
Assefa aye 10,00 ooo Rou Rightof use

FA 68091
9rad
TO Fut Ine 68091

4rad Repay Nk

Deprn

To Prepaid LeaseRent 86575

4325751577rad Asset Bisextaatriend

Ba J E HI
II Dep 635518
iii iii

Pree
432573

a
lessor lessee Fair value Tr Price
i Fair value PY of FCF EIR
Diff Btw F v2 T P will depend on relationship

304
305
 IENG LAR Relationship Parent Subsidiary

CF TÉÉnM
SEED z

Yr CF

O 10.00.00.000 outflow
1 5 0 7100 immaterial
Shyrend 10,00 00.000 inflow Princip

of FA Relationship r
Fill FY TP Fx Pv of Fcf EIR
step
10 Cr X D F of 5Myr 127

5,67 93,000 211

step Diff Btw Fair value Itr Price LEECE 3

10 Cr G InestinSubs 4 3257 er
5,67 93,000
4 32,57000 To dB 100
Inst in Subsidiary Indetteig
Docteothing

Given
Steph ECR 12 Parent Sub

Step 5 CAI FAT IntIncome

CFTawe
speed
ur open gut iii Repayment cu
I 5,67 93,000 6809160 17 63552160
2 6,3552,160
3
y
5 loan

306
 EE 2nd FAT parent

Indas 109
01 04 41 FA Justin PrefShare 56743 do
Inustin Subsidiary 43257,000 Ind As 110 Do Nothingon
Yr end
TO dB 10.0000,000

31 03 42 FA 6809160
Fat In 6809160

Bal J E HE
3131 3 FA
to Tat Ine
31 31 4 FA
TO Fut Ine
31 31 5 FA
To Int Ine
31 31 6 FA
To Tut Inc
CCB loot
TO FA lo Cr

307
308
Illust 122 LDR Relationship Employer Employee
Point of view co CEmployer FA
Step cap Fa

Mr CF
GL outflow
1 5 PrineRepay in Finstad Jum for CFTable

and Cash flows Repaymentrec'd Repay

Face value Copa Iufyj.n Prine gut
1 16.00.000 80000 3 22 80k 12.8C
2 12.8L 64K 3 22 6412 9.62
3 9 6L 48K 3 2L 48k 6 42

y 6.42 3212 3 22 3212 3.22

5 3.2L 16K 3.24 1612

FilofFA Relationship FA TP
sty
Fu PVofFCF
lot.CEIR14rFCECWN17TLC3.2LxpqyD.F lot p
I
2 3 842
3 3 68C
3 52L
y EE
5 3 36L Ind AS 109
1406272 FAALEDA1406272
ayy

4
PrepaidEBEN 193728

anna on no
ay
1906272
16.00.000
fluff over Sym
193728 As perIndAS19

309
Steph EIR lot

FA Ine Ree'd

Steffy Opr Hut

ar
cot Repaymmett Is Diffarlendayra
400000
31.12 X Hq 140627 1146899 piffiamsettt
31 1212 1146899 114690 3890007 872589
31 12 3 827589 87259 368000 597348
31 12 Xy 597348 59735 352000 305083
31 12 5 305083 30508 336000 0

adj
409 approx

JE In the Booksof Yeo Hel

onto FA loan to eup Da

1406272 Ind As 109

Prepaid EBEAK Dd 193728 Ind As 19 aloft over period

of loan i e Egos
TO OB All 16,001000

31121 1 FA 140627
To Fut Ine 140627

31 12 41 IIB ACC 4.00.000

TO FA 4.00.000

31121 1 PIL Alcoa 38746 i

193728138746
c
159982
TOPrepaidEBE 38746 2154982138746 116236
3
193728154ns
y
art entries asked 5
Ite only was

310
Extra Part
In exam sometimes Year I i e 31 121 1 Bls Extract Pk Extract maybe

asked

Pll Extract for the yr 311,21 1 II Bls Extract 31 12 1

IJ Assets
aggie moat Nce
FI loan to Emp 871589
1148,8994269310
cutrentfromBelong
Este zag
urials

prepaid EBE 1549826138746 116236

CI
FA loan to Emp 269310
11468996877889J
LAT y'tlend y 982end Next 12m
settle
Prepaid EBE 38746
15498261162363

How to bifurcate btw current non current FA Applicable

He

tint current ur lend as Gar Lend us Prepaid EBE

Applicable
Non Current Blf ar2endels
on ur level

311
312
Question 4 LDR Rethip Employer Employee

of CFA
step CF

g 15L outlaw
1 5 can

GO OF Table Repayment
ar Apn Face value Jat 64 Pain Int cu
31 3 X2 15.00.000 90K 31 90k 12L

43 12L 72K 32 7212 9L

XY 9L 54k 34 15912 GL
45 3L 93612 3L
6L 3612
XG 3L 1812 34 1812

ER
StepfFqFA p.F cot PY
1 3 92
2 3.72L
3 3 592

Y 3.364
5 3 18L
Py 1354602

Step Diff Btw FY MTP

145398

Step EIR lot

313
 Step 5 CAT FA
arend Opn It coy Rep Cls
31 3 2 1354602 135960 3 92 11.00.062
3 1100062 110006 3 722 838068
XY
XS
XG

ELEM
Odoulx FA LocurtoEarp 1359602

Prepaid EBE 145398

TO CIB 15.00.000

31 312 FA 135960
Futon 135660

CIB 390000
TO FA 390000

Pll 29080 Ur Op cutoff ch

TOPrep EBE 29080 I 14539849080 116318
145398 5am 2 116318 29080 87238

3
y
5
The treatment done by accountant is incorrect
It
as the loan will be record Not 15C But will be recorded
at Fair value i e 1354602
Jut Ine in Pk will be Booked EIR on Fair value i e 135460

314
 BIS Extract 31 03 XE

Left
Ifan to Emp 838068
Prepaid EBE 87238

Te
En II
Loan to Eup 261994
prepaid EBE 29080

OIL Irrespective of whether employee is required to stay in service

or not Prepaid EBE will be w loft over the period of loan

315
 Summary of Types of Relationships their Accounting Treatment
Owes on lesson
PMO
Lessee le lessor Security Deposit
HE
JE
FA Alc Da Ind ASI CIB Alc Dd
Prepaid lease Rent AleDa TO FL
f to do To Advance Ine lease Rent
anyone
aloft over periodof Sec Dep In'dAs 116
periodof Sec Dep

to subsidiary
Iffglangiren
helps
Subsidiary
I
CFA FL
HI H
EE JE
FA Ale Da xx dB AK Dd xx
IndMo
Inustin Subs to FC Ale xx
TOCCB XX To Capital Contribution xx Inda 110

Notreatment
from Parent
on Yr end No treatment on Yr end

loan
Kfubsidiary helps parent given by Subsidiary toParam
adds
no CE CE
Ho CI BAC Dd
FA AK Dd XX TO FL
Refit Ale Da xx other Eg
TO Div Inc PIL
TO UB as it is
contreatment on trend appropriation ofprofit No treatment on trend

316
 Never
as'eam
Eiger tepee
FA loan to Earp CIB
Ind As19 TO FL
Prepaid EBE
TO UB TOAdvance Salt Uab
k
cutoff ones the periodof
cutoff over the periodof loan
loan

Loan Granted by Gout to co less than mkt Rateof Interest

I
but helping I
f Las Fei
never
asked
CIB Alc Da
TO FL ALC
TO Govt Grant Ind AS20J

Treatment will be as
per Ind
As 20
Caves also solved in Ind AS20

317
 Compound Financial Instrument Flt Equity Issuer pointofview only
Always assume
If
nothing is mentioned regardingwho has optionto convert holderhastheoption

É
Case A Option with holder
Akita saved 41 Jut as
Point ofview Issued it issuedthe deb with
conversionoption intoequity
Effing lot Deb
ay
y
foption Sailings in Jet
Jut Princi holder
H 147 107
FL FL Equity comp

step Ce FL
Yr CF

g 25L inflow
1 5 C2 5L p a outflow coupon
5th 254 outflow prince

Step Fu of FL Prof FCF EIR

14

25LXAiFof5yrs
14Y.CH25LxD.F
of5thyr 147
21,56692

sty DiffBtwT.P FV
252672156692
343308 Equity Camp

ER int
Stey

318
 LAI FL
115
ur
opn Fatima It Repayment as
I 301937 2500007 2208629
2156,692
2 2208629 309208 280000 2267837
3 2267837 317497 250000 23 35,334

4 2335,334 326967 250000 29 12,281

5 29 12,281 337719 2800007 25.00.000 BeforeAny
repaymentto
holder

IE Cfc
CIB Alc Dd
DI 25,001000
TO Fin liable ClotDeb 2156,692
00
No furtherAlding on
TO Equity Camp O E 343308 arend

Arend JutExp Aicpa 301937

TO FL 301937

Yrend FL AK Dd 2.5L
DUB 2.5L
BIS Extract 45 end Before HolderExercisesAny option
BIS C

Assets

Egads
OE Eg Comp 343308

dEceoy.ba 25L

319
Casey Holder exercises cashoption Casey HolderExercises Equity option

I FL 09000 I FLAIL Da 25L

TO Cy 25,00 000 TO Eq camp 252
3433084725,00 000
Equity Camp Bal
2 EgcompCOE All 343308 28,43 308
TO Retained Ale 343308 Eq compAle Da 28 93,308
Earnings
TO ESC Eg XX

TO See Prem XX
TORE Remaining XX
Bal
if any

Bare Rates Debit what came in

U the receiver
Asset Da Bal P Da te Ca
U
T ca
all Exp a losses
lials Ca Bal te Da
MDO t Ca
Exp Da Bal
Income Ca Bal N Ca f Dd

320
Egf Case B Option is with Issues

OF
lot Deb

gut
He
e

He
t
kneader sang
He
É
FL Equity Equity

CF FL Mandatory cash flows

Steph
ur CF
g 25L inflow
1 5 2.51pm outflow coupon
It sharend 2540 payment avoidable issuer's option

step FYof FL PV of FCF ER

int

2.5LXAFof5yrs
luY.I
858270

step Eg Camp Diff Btw FY AFP step CAT FL

25,0010006858270 4rOpnJut TI.l Repin ay
1641730 1 858270 120158 2500007 72842

2 728428 1019780 250000758040

ER 147 3 580408 81257 250000 411665

Sty
Y 411665 57633 1250000 219298
5219298 30702 2500007
d
Ed
zero coz Princip
was treatedas eau

321
 CB Ale Da 2500000

TO FL 858270
TO Eq 1641730

Jut Exp
Tried 120158
TO FL 120158

artend FC 250000
TO Cy 250000
Bls Extant arsenide Before issuer exercises option
BIS

Etan
EFE 1641730
Eq Comp

tiff all

Option Issued pays cash 251

Eq comp Ale Da 1641730
Ret Earnings Blf AllDd 858270
TO CIB All 25,001000

option Issues
gives eq shares
Eq Camp Ale Da
R E CBH Alc Da Coal Kum pad gayatou
TO ESC
TO sap
TO R E Blf
Balbach gaya ton

322
 EE 81 Come Deb option to come at Holder

s
gig Payne
Holder Saving in Jut

therewith
n

OFY
some fromstep to

CF FL step
St assuming Not.C
Ur GF
0 80000 Inflow
1 3 6400p a outflow coupon
3rdurend 80000 outlaw Prine

Step F V of F L proffer É
6400 X AF of 34N 127
80000XD.FofBrdyr

72314 12f.I

Step Diff Btw Treaty Eg comp

80000 72314
7686

Elka 12 that rate without Tr cost

Stef
MERMAID
FÉ Allocate Tr Cost to Flat zooox7231480000
s Fl 72314 1808 Deduct from Flon Day
zoo Deductfrom Eg on Day
s
Eg 7686 192 768680000
2000

323
 CAIN FL EIR
Stef
Opry If gut 1st Repayment
ar cis

I 70506 8461 6400 72567

2 72567 8708 6400 74875
3 74875 8985 69007 4 0 80000

Becausein Mkt Jut Rate

Stef New Elk I y of 12
Ta Costimpactis
not
CatterTr
Cost x there
FV PV of FCF EIR
Yet

ÉFI proffer set

2 147 Assume 2 127 Assume

6400X A F of 34ns 147 6400XA Fof3yns
12YH80000XD.F
of 3rdyr 141
80000 F of 3rd XD yr 121
68856 72314

Interpolation 12 14 121 13.051 approx tenting

4143344370,56 Tr Cost

Stept CAT CFL New EIR

Yr Opn Fat 13.057 Repay cos
yoga 9201 6400 73307
2 73307 9567 6400 76974
76974 9980 6400 800001
3
53 Before holderexercises
approxadj
cash eq option

324
 BIS Extract Dayo
CIB AK Da 80,000
Asset
TO FL ACC 72314 Egatab
TO Eq 7686
t.IE Eg Comp 76866 192 7994
Taff FC ACCDO 1808

Fg ACC DO 192
LIE 172314 E 1808
TO CIB 2000 170506
Fatone
CatterTrCost

CFI with tr cost steps Summary CFI without Ta cost Steps Summary

step CF Cf
step
step Fv of Fc older step FYof FL
step Eq step Diff Cfg
Step Old EIR Step EIR
step Allocation of Troost I Fg Step cat
New EIR after Tc
step
Step CAT CFL New EIR

325
326
Illust 121 LDR Pret shares compulsory
Id
Com
mandatory
gag
Stepp
ur
can
É
0 Inflows 30k Th Cost 7
15.00.000
1
shy
5 1.5L outflows coupon
pa
II say I

step Froff Éikist

1.5L X AFof Syrs 157
502823

Step Diff Btw Fu at p Eg Comp

1500,000 502823 997177

Old EIR 157

Sty

Step Allocation of Tr Cost Btw FLU Eq

FL 10056 30000 5,82130
3 oooo
Eq 19944 30000
911 0

New EIR 15.867 Given

Step
Incl Effectof
Tr cost

327
 502823
LAT FL Yo will make mistake.bytaking
Step
end
ITEyycFaddage Repayment ay
3103 2 28153712 1500007 920920
502823 Tfg
31 03 3 920920 66758 150000 337678
XY 331678 53556 150000 241223
XS 241233 38260 150000 129493
XG 129493 20538 150000 o
3
sapproxadj

ÉÉ1É É Aicpa 15.00.000

TO FL ClotCCCPS AK 502832
TO EqComp 101COPS Ale 997177

I canaesopass
oeloulxi FLAK DO 10056 directly combined
Tr Cost
Eq ACC DO 19944 entry
TOCCB ACC 30000

31 31 2 Div Exp 78153

To Fe 78153

31 3 72 FL ACDA 150000
TOCIB 150000

328
 31 31 3 Div Exp 66758
TO FL 66758

31 3 23 FL ACDA 150000
TOCIB 150000

31 31 4 Div Exp 53556

TO FL 53556

31 3 74 FL ACDA 150000
TOCIB 150000

31 3 75 Div Exp 38260

TO FL 38260

31 3 75 FL D 150000
Toei 150000

31 31 6 Div Exp 20538

TO FL 20538

31 3 46 FL ACDA 150000
TOCIB 150000
CEnicension
from Pret to Eq FL 0 Eq 7 971774199447 977233
31
3116 Eg Camp Ale Da 977233
TO ESC 50000 5000cg shares 10

TO Sec Prem Blf 927233

329
330
Illust 117 LAR Bonds

Tut Savingsin Jat

YETHiL
holder
Eq

ÉÉa
step coma
Ur CF
g I or inflow
1 8 arpa outflow coupon
8th er outflow Prine

Fu of FL PV of FCF EIR
Step
1

GLX AF of 8yrs 81

4 ler xD F of8thyr 81
88,50 672

Step DiffBtw Frate Eg Comp

1,00 00,000 E 88,50672
1149328

87
Steph Elka

331
 Step 5 CAT
arend open ht 8 Repayment ces

30.06 x2 ggsogy 708054 600000 8958726

X3 8988726 716698 600000 9075424
XY 9075424 726034 600000 92014th
X5 9201458 736117 600000 9337575
X6 9337575 747006 600000 9489580
XT 9484580 758766 600000 9643347
XP 9643347 271488 600000 9814815
X9 9814815 785185 600000 1.00.00.000

Day
AIX CIB All Da 1100,09000
TO FLAK 88,50 672
TO Eq Comp 11149,328

At the end of 4 3 301061 4

Before conversion FL 9201458

Eq 1149328

Holders opting for shares

Sig
on 301061 4
IÉÉÉ 92401458
9201958 FC ALDS

Eg 9201458 Eq Ale Da 1149328

Eq Bal 9201458 1149328 1,0350,786 TO Eq sharecap 1 03,50786
Eq Comp Ale 1,03 50,786
TO Equity capital 1,03 50,786

332
 illust 126
HE
option toconvert Assume Mitu holder
IE missing

Ques 13 HW
I
same as illus 126

Efe In Bls Extract in this Owes ICAI did Not

give
current Non current

Bifurcation will present FL into current

But we
Nan Curr

4
It
when to Assume Fx T P ie Fu PVof FCF EIR
He

Pre exist's relation Fu pv of Foe ER a Diff Btw FY at p

will be treatedbased
on relation

Compound Fin Tus Fil Pv of Fcf EIR Diff BtwFv Top

will be treated as Eg
comp

it If fair value is Based on level I input

offer to Fic PV of FCF EIR Diff Btw Fr E TP
chapter
will be tot to PIL CDayD

Au remaining ques Assume FY TP

333
334
 Conversion od
Early settlement of Compound Financial Just

Quest LDR
settlement of CFI 81 Com Deb
Early
t
Jut Pain Holder SavingsinJul
e FL
SI te
y Equity

su inflow
1 5 40000 a outflows coupon
p
Shar 500000 outflow prine

FV of FL CPU of FCF ERT

step
40000 X AF of Sys 121 4 500000 X D F of 5thyr 127
427904

step DiffBtw FY Utp Equity

72096

Step EIR 121

Step LAT FL
ar ended
Opr gut 121 Repay cis

31 3 20 427904 51348 40000 439252

31 3 21 939252 52710 40000 451963
31 3 22 451963 54236 40000 466198 Eady settlement
31 3 23
313 24

335
 01 09 22 Bls Extract
of CFI Asset Ed
01 09 22 Early settlement
He

Payment 525000 ÉÉÉÉq

comp 72096

JE 4h 466198
III Do 466198 A
9 Alc Da 72096
TO CCB 525000
TO PIL R E 13294

Payment 525000 Bifurcate Btw FLEE

Not in
Fatio of ca Batin
ratio of
a
Paid for Fe Paid for Eg Blf F I
Revised 991204 525000 491204
F V of Fl
on 01 04 22
CAMI 33796
am

FL carrytaut 466198 Eq Caray'sAunt 72096

peace DacBlf TO C B 33796
TO CIB 991204 To RetEarntCoE 38300
I Blf
H
Liable Blf trf to plc g By ay to OE

336
they can of Revised of FL on 01 04 22

EAN
y 31,32031,32131,322 2,3

nok nok nok hok

2,4

Fu pv of Remaining FCF
r r
You 22 at
fee
MOK X AF of 91
Lyn
Agg Danish
4 SIX D F of 2ndyr ay gg
491204 CA FX

Phone 10000 21600

Calculator 5000 4000

Danish Paid AK
25000
He
Based on F V

337
 illust 125 com Deb
only mandatory cashflows A
text celey Jut Prin Salling
ur EF
X y
o soc inflow
1 4 outflow coupon
1,19
34 a
ththyrend 27.5L 252 107
prem
tot PrineCFD
Step FX of FL
3LxAFofayrs 1ot.t 27 52 X D F of 4th yr 107

28 21L

Step Diff Btw FV UTP Eq

SOE 28 21 21 79

Step EIR lot

Step 5 LAT
ur apn Jut lot Repay as

HE
at asked
ques

J E

Tard AB SOC
TO FL 61 Deb 28.21L
TO Eq 67 Deb 21 79L

338
339
Ileus 36 LDR Relationship Parent helps Subsidiary

Cased loan Repayable on Demand

Relation FY PV of FCF EIR
FCF I not Available
a
n
Tenure
n u
EIR
Fx Tp As no other option left

JE Xyz Parent FA ABC Subsidiary FC

paid FA Thots Alc Pa 10.00.000 413 Atc Da 10.00.000

loan tram
TO CIB Alc 10.00.000 TO FL 1909000
parent

Jutfree
case BO Loan 34ns Elk lot Coupon at

steel
90 lol

1 3 0 coupon zero

3rd Ioc Repay Prine

of FA FL
step E Pl of FCF cot
lol X DF of 3rd yr cot
751315

Step DffIBtwT.PUFU 492 Parent Imistin sub

1040 757315 248685 ABC Subs cap Cant from Parent
Step EIR lot

340
 step cat
open At lot
Repay
yr µ 75132 Egypt

Parent ABC Subs

EE 42

FA ACC Da 751315 Dayd CLB AK Dd 10.00.000

Day
Instin Subs ALDS 2486850 To FL Alc 751315
TO CIB ACC 10.00.000 TO Cap Cont Are 248685
OE

FA 75132
artery É
TO Fut Ine 75132 TO FL 75132

g my

Scenario Refer Text Book Pg33 17

Consolidated Financial Statements loan Treatment

Inter Co Transactions Loan Eliminated

341
342
 Question 8 LPR
Aust same as illust 36
case same as above

Same as Prey Ques

CEO Find Fu 7513 g
IAI se no
Riven F11 810150 Case this always panga
CAT asked anear
any
ur Ces
I
op
810150
Fat
81015
toy
RIM 891165
Peyote LAT of 34ns wont match as Fu of 751315 was not taken

JE
Kk Parent FA 4K Subs FL

FA 810150 CIB Alc Do

DayI 10,001000

Insist in Subs 189850 TO FLAK 810150

TO CIB AK 10 00,000 TO Capcontr 189850

FA 81015 Feet Exp 81015

Erlend
TO Fut Ine 81015 TO FL 81015

Same
Cased as ins 36

CFS treatments Same as ins 36

Where Subs Is Parent

UK FA KID FC
A
subsidiary win peat parent win treat pay pix Iwf
Day Diff as Dix Dist as Dix Ine
JE EYpis b classyComte Iggygilt.gg assume Cora
TO CCB

343
 Initial measurement for FA NFL for Fair value Method
Refer FR Digest Pg 33 21 33 29 Eds Iggy

Eq shares
eg Inustin
Subsequent measurement of FA UFL under all methods
ACM FUTOCICR FUTOCICHR FUTPL
Ft
Particulars

Initial Measurement Fair value Fair value Fair value Fairvalue

H
TrEost To cost II cast
Tr Cost AddtoFv Addto Fy Addto Fx Pll
Substneas evevy4rendAmortise.d Fairvalue Fair value Fairvalue
costly
Bay
Interest dix PIL PIL PIL PIL
Casper CasperEIR Casper ET
EIR coupon as U
when redd
Unrealised Gain loss OCI R occur Pll

Realised Gain loss PIL PIL pil

Treatment of Previous Reclassifiedto Not reclassified

to PIL
unrealised Gain loss Pll Trf within
bookedin old one is allowed
i e it will be
trf to RetEarns

344
Subsequent Measurement for FL Equity Equity
FL ACM FUTPL
Default few Cases
method prescribed by
Ind AS
DiffBtw T.PE FY
Initial Measurement Fair value Fair value
Fairname If Ea
Tr Est Tr cost

Tr Cost less from Fl Pll Deductfrom Eq

Subs Measurement Amortised cost Fair name not Remeasured

LAT IS bae itstays at initialAmt

Iattant
Jut paid Pll me of profit

Unrealised Realised PIL other Equity

Gain 108s Pll if any

345
 Modification

not
Akita
109ns lo er
q
Chetan Cloangiven
taken H
FA

Yr
e r

z r

3r
Repayment X
en

Repayment schedule change

tt
at so
emairTewre Get 89N
EMI tr f

Border

346
 Modification Alding
In case of Borrowed FL

D
t Check whether modification is substantial or NI moan

HI
CA of old Fin liab on Dateof Madh e PV of Revised Futurecash outflows
including outflow of Tr Cost
old EIR
X
CA of old FL on Date of moon

less than 107 Moon is Not Substantial

tf lot
equalto lot Mod is Substantial
Ignorethe sign more than my

case
Case

Modhisnotsubstantial mad is substantial

Derecognise cA
Step Adj Tr Costfrom old FL step old FL
less from c a of old FD to New FL Recag
F1
PVof RevFCF
Diff Trf to PLL New EIR
Tr cost Adifromca
step New ear y
Repaymentschchang
Step Tr cost if any on nod
trf to pie why assume it
Stepy cat after Mod was incurred for
th PIL old FL
ur Opm EIR Tock
of old Fl cat afterMod
E Tr Cost
stepy
ur Opn Er New
New FL
Failure

347
348
 Norelation NO CFI p
Edo Eds II
Éxampleno CO B
2 Pg3394 3392 OE
He coupon lot

Normal Aleling Before modification

C F FL
same as I
Preux

step coupon
Yr
o lol inflow
1 10 Cup a outflow coupon
lothyrend lol outflow princip

FP
StepIFv of FL PYOFFCF EIR FV
Hee Kot

10,00 000

steppiffB.tw

FStep 0ER lot

CAT FL
stepyTiuDateofrnodnJarendopeningJut
iot.CE'D Repayment as
31 12.710 10.00.000 12 D 10L

3112 X1 10L IL IL LOL

31 12 x2 lol IL IL 10L

3112 3 lol 1L IL 10L

31 12 9 10C IL IL
É
HI
C A of old Fin lab
on Date of Mod
i e 011011 5

349
 Mod of Fl Ol ol Xs

modification Adding Borrower

step cheek whether mod is subs or not um Imply

CA of old FL on Date of mad A PV ofRevFCF incl Tr Cost Old EIR
CA of old Flon Date of modn

LOL G 1093,979
y 100
4.35 Not itSubstantial
is
approx as less than
IOL 107

Pll of Revised Future cashflows ind Tr Cost old ER

WII
Er
I
011011 5 31 121 9

FsooooCtr.costste16LxD.F
Myra1ot.s
s Prine outflow
4 zero coupon outflow
50K XD Fof Day 0 Tr cost outflow DayD Dorn

1093,474
why Add T C in FL
H
this is NOT Fu of FL
www.anwftiYMNWWOWW
Tut Prine
Tr Cost
outflows are all

where

350
Mad not substantial Trc treatment
confuse
Step Adj Ta cost from EI
FL 50.000 Not Rev Fair
EE Future value
TOCLB 50,000 can
outflows Adj
aloilxs Revised cot of old FL IOLE SOK H of FL
Tr
Castuow Away
It cash

He
ygouowDete.dstep
NewEIRonor.o Xs why
Tr cost Adjustfrom CA
FY PV of FCF EIR Repayment sch change

Eee
16 LX Def of 5thyr lot
16LXDaFof5Myr
907883 12t.e 993474

Interpolation 10 9934746950000 12 107

X
9934746 goy
11 021 EIR
approx New

Steph cat latter Mod date New EIR

arend
apn Jut 11.821 Repayment ces

31 12 5 101950000 104690 f
46 1054690 116227 A 1170917
XI 1170917 129035 4 1299952
48 1299952 143255 g 1943207
9 1493207 159041 464
2248
approg

351
 Norelation NO CFI P
EI
Éxampleno
1 CO BI OE
H L
Normal Aceting Before Modification ERIE premX
sTr.costxCEameasStep
C.F FL
coupon
Ur
o lol inflow
1 10 Cup a outflow coupon
lothyrend lol outflow princip

FP
StepIFv of FL PYOFFCF EIR FV
Hee Kot

10100,000

steppiffB.tw

XStep 0ER lot

CAT FL
StepyTiuDateofrnodnJarendopeningJut
iot.CE'D Repayment as
31 12.710 10.00.000 12 D 102

3112 XI lol 1L IL lol

31 12 x2 lol IL IL 10L

3112 3 lol 1L IL IOL

31 12 9 10C IL IL
É
HI
C A of old Fin lab
on Date of Mod
ie oiloilxs

352
 Moan Borrower
Alding

Step Cheek Mad Subs or Not

PVotFFfFCind.Tr.CostJ
CA of old FL Dom G
oldElR.x1ooc.A
on

of Old Flon Dorn

11 11 327 Mod is subs

LOC G 13,158
approx more than 107
lol

aw Prof Rex FCF incl Troost old EIR

May I 1
1
513111431 12 75 731112111141931142031
6,11
coupons't sole sole sole 5012 SOK SOK SOK

Tr Cost Tooooo
15L
Prine

Coupon 50 KX AF of Furs 101

ioy.JoutHouesTr
Rin 15LXDFof7Myr
CostILXD.Fof Day

11,13 158

353
Moan substantial

step De Recog aldrete Recognise

He NIFL
carrying Fair value
Aunt
old FL Ale Da 10,09000 CA

Fair value oiloilxs

TO New CFL 958097
pitoffce Newt
TO PLL 41903 EIR

ÉÉÉI of us in

15LXD.Fof7Myr
958097liT.t diction assume
Bahar i Tr Cost Pll

Trftopll only case where Tr Cost not

adj with
step Tryst Fl CButtrftopli
Pll Ak Do 1,001000 1
UB Ak 100,000 Substantial Mad Borrower

Stepy CAT Afternoon

ur opn NewFD Jut 115 Repayment as
31 12 75 958097 105391 50000 1013488
V6 1013488 111484 50000 1074971
XT 1074971 118247 50000 1143218
XP 1143218 50000 1218972
125754
9 1218972 134087 50000 1303059
20 1303059 143337 50000 1396396
21 1396396 153604 50000 o
15,040007

354
355
 Illus 124 LNR Mad Ques No Relation No CFI FY TP etc

Before Ied
Step CE

50.06.00.000 inflow 458,1 96 outflow 49,4129,904 met

inflow
Daud
1 5
getting repaid in Install
and As princip is

Cashflow table Facevalue Repayment cis

and Coupon
ur ended Opn Face value Jut 174 Prince Jut
31 12 X1 50,00 00,000 5,5000,000 10,0 00,000 5,500,000 40,000000

X2 40,0000,000 4,4000,000 10.00.00.000 4,490 000 3900100.00

3 30,0000,000 3,30 00,000 1400100.000 330,00000720,0000
4 26,00 00,000 2,20 00,000 10,0000,000
2120,00100071010900

XS 10,00 00,000 410100,000 10,0000,000 1,1000,000

No Relation No CFI
Step Fair value of FL Only Prem Disc Tr costs FY FP ATC
FY TP GTC

56,00 00,00067 58 70,096

49,41 29,904

Step EIR 11.57 Given

Step Ctia Mod Date

CAT
urendedopnCFairvawe9uf ti.s't Reporter cis

31 12 1 99,4129,904 5,6824,939 15,59001000 39,5954,893

31.12 x2 39,5959,843 4,55 34,807 194 4,4 00,000 39,74 89,650
honey Jat

356
Ike why did we take any fat payment on 31121 2
Co Approached the Bank on last day i e on the date of Repayment this

indicates that co did not have funds to make the Repayment of 31121 2

But owes mentions that Fatrepayment was done we tookrepayment

of Only Tut on 31 12 72

Modification of FL 311121 2 Borrower

mod
S Notcan
Check whether mad is subs or Not
24124
C A of old Fl on Date of mad t pyofRevFCFCind Tr.costJ
of old FC ioldElRC.A X 100

39,74 89,650 G 45,15 22,791 13 597 Mod is

Substantial
39,74 89,650

RevisedFCF
com Cash flow table For Revised FutureCashflows Repayment
pqnCEgqyayrnejJut is7 k
dan
wended prine Jut as

31 12 3 40 er Ger Har er 36er

31 12 4 36 or 5 her Ker 5her 32 er
X5 32or 4 8 or er

XG 4 2er Ucr 4 2er Laer

Xt Laer 3 Ger Cher 3 Ger Laer
8 Laer Zor Ger Zar leer
X9 leer n Lcr Laker 12er
20 12er 1 for Ger 1 Pcr Per
21 Per 1 her Cher lazar her
22 her o Ger Ger Co Ger O

357
 New Coupon 151
ÉeÉÉÉ colder
DEI DF
CrewEIR
15 Elk Because
no prem
NO Disc
31 03 3 10 or Not c

Xy 9 Ucr
45 8.8 er
V6 8 her

XT F Ger
XD For
79 6 her
20 5 Per
21 5 Lcr

22 4 Ger

PY 951522,791 Pv 40 er

any hoer
when coupon Elk
Facevalue Fairyam
Fea Recognise nape
Step De Recognise old

IE 3111212 Old FLAK Da 3974,89650 C c.A

Pll Ale Da 25 10,350
not
ÉÉÉÉÉ
nay Ed
TernsRevised
Step To cost ple gateaupanist
The No disc noPrem
I
cat Catternnodn
No T C
MIE
step
arena open
Fairlane
Newey Joy 17 Repayment as
3112 3 Goer Gor Cloer 36er
He
only asked fill
here

358
 Always refer Latte pass f e
Journal Enfight
01 01 x1 CB All Dd 50 er 311242 Jut Exp 4,55,34807
TO FL 50 Cr TO FL 4,5534,807

ol ol Xl FL Ale Da 58,700,096 3 K XL FL 4,40 00,000

Tr Cost Tock 88170,09g Tock 9,4000,000

311121 1 Int Exp 56824939 c.a

3jgg2qffO1dFLAKD9397489650C
Pll Ale Da 25 10,350
TO FL 56824939
TO NEW FLAN2 40100100,000

31 121 1 Fl 15 scr
TO 413 15 Ser

3411 Int Exp All Da Ger

TO FL Ger

31 12 73 FL 10er
TO CIB IOer

Only asked
Huyhere X

359
 Modification

In case of lender FA EIR cannot change in mod

É
n

Step C.A of old FA Con Dateof Mod Borrower ka

a
calm is

Step Prof Revised Future cashflows wdEIR Gttender ka

fall Alding
by 16 in pp

Increase Decrease in FA
step If Ain't

I
no
pie RateCases To Pll 10
Max Based on
cases relation
eg If Relation is of Employer Employee
He
Adj
He
againstprepaidEBE
IE FA
TO Prepaid EBE
idust123_

Stepy CAT Cafterthodn

360
361
 Illus 123 CUR Lender FA Pre exist relationship Employer Employee
Before Mod Fit t.PT Prof
Fg ER
CF FA
SEI
ur
o Cine outflow
1

2 244000 Gain Ones

3 230000 Jax
4 216000
5 208000

Step FYgIFA_CFy_pyofFcFaeirM.D.F FY T.pl

Yr 121 p
31 12 X 1 258000
X2 244000
X3 230000
XY 216000
X 5 208000
893879approx

Step Diff Btw FY AFP

10,00 0004 843879

aloft Ind As19
156121 Prepaid EBE overthe
period of loan
i e over 54ns

Step EIR 121

362
 ne
step LAT
TiuDateofModn7RepayReceiueurOpn84zgyqIuteI.ht
31 12 X1 101265 258000 687144
31 12 2 687144 82457 12 800 325661
Hoan Date d
Prepay

311121 2
Menacing
c.A of old FA on Date of Mod 325601
Step

step py of Ray FCF old ETR 358673

I Can Date of mod
Cure
Rin FA 33072
Step PassFE for Rin FA
31 121 2 FA AK Da 33072
To Prepaid EBE 33072
Co2 of Relationship
why motple
PY of Revised future cash flows
and
I 1 I
31112 31 12 73 3 12 44
216000 208000
0
ur cat at 9 py
i 34121 3 216000
2 31 12 44 208000
358673
cat lattermodD
step Open
newname
Jut 127 Repayment Cy
31 12 3 358673 4309 216000 185714
31 12 4 185714 22286 2080007

363
 FA wheel Co Books
Id Entries

axl FA Alc Da 843879

aloft over Suns as analla X
sans
PrepaidEBEACepy 156121 Tenure of loan
TO CIB All 10,001000

Inftprepaignetainfan
34121 1 FA 101265 Ur as
131224 124897
M Int Inc 101265 31 121 1 156121
1441 93673
31121 2124897 31224
31 14 1 CIB 2 0 3307276060in
k My
Topa 258000 gn Hoff
dates over
remainstenure 24ns
3TiFx 30301
EBE ped 31224 2431,4 360601 GI B
Prepaid EB 31224 31 121 430300 30300

cutoff over Jyp

31 12 42 FA ALC Da 82457
TO Tat Ine 82457

31 12 72 CIB 449000
Topa 444000

alongwith Prepayment
31 12
12 EBE AlcDa 31224
TO Prepaid EBE 31224

BITTER FA Alc Da 33072

Man To Prepaid EBEAK 33072
IE

364
31 121 3 FA 43041
TO Fut Ine 93041

CIB 216000
TO FA 216000

EBE Pt 30301
TO Prepaid E BE 30301

31 12 44 FA 22286
TO Fut Ine 22286

CIB 208000
TO FA 208000

EBE Pt 30300
TO E BE 30300
Prepaid

365
366
 Questipenan in no aelationship

c F

step
der outflow 10L outflow L ler
1 2 at coupon
2ndarend 2 her inflow

no relation No CFI Fu tp
step Fu of FA
Add TC in case FA
FY Fp Ftc
Lort lol
2.10 or

Step ECR 6.97 Given

Step cat Ctia Mod Date

arend apn 6 ay as
co.oqaooJut
19,49 000
PET
118 2 2,24 49,000
inteinpate

Moan Alding lender

CA of old FA Dorn 2,24 49,000
step on

Step PyofRevFCF 40579,981

OidECRG2crXD
Fof1yrag.qy
I in FA 18 69,019

Pll Pd 1869019 t.ph

Step EE
pam
No relation
to pay

367
 step eat CatternnodD
ur open gut 6.97 Repay
3103 19 2,0579,981 14,201019 2,2 00,000

É
01 04 17 FA
TO413 Ier
01 04 17 FA AlcDd 10L

Ic DGB lol

31 03 18 FA All Do 14,49000
TO Fut Fnc 14,491000

31 03 18 1869019
Hoan DFA 1869019

31 3 19 FA 14,20 019
TO Tat Ine 19,2011019

31 3 20 CIB MCM 2,2900 600

Topa 2.20.00.000

368
369
Question 19 WR Mad FA Relationship Empt Empee
Before Madd
step OF CFA Jutfree loan
CE
Y se Cousteau

1 3 0 of coupon

3Mur 5L inflow prine

F PV of FCF ER Relations
step ofFA
SIX D F of 3rd yr 51
431919

Step Diff Btw T.PE Fix

500000 E 931919
68081 Prepaid EBE cutoff over tenure of loan
i e 39ns

Step 4 EIR 57

CAT CtiaDate of rhodri

step
Yr end Opn Jut 51 Repayment es
31 1031 2 431919 21596 453515
31 3953515
31 22676 47619in
A
Date ofMadh

370
 Mod Alling lewder FA 311031 3

Step c.A of old FA 478191

Step Pyof Rex FA Old EIR 205676

I l 1 A 1
acloulx 31131 2 31131 3 31131 4
Molen
Date
215416 34ns
91

8
He
2

III pye 2.5L xD F of 4th yr 57 205676

Step I in FA 27051
JE
Prepaid EBE Alcoa 270875 Asper ICAI Plc 270575

gape TO FA ACC 270515 TO FA 270575

StepcAtCafternnodmurendopnlM9ylIut
5t.Repaymeet us
31 031 4 205676 10284 7 215960
XS 215960 10798 226758
46 226758 11338 C 238096
47 238096 11904 2500007

EE only asked for initial Recagh Mod Entry Ideal Eaton

alou x1 FA 431919 311031 3 Prepaid EBEAKDA 270575
Prepaid EBE 68081 TO FA ACC 270515
TO CIB 500000
AsperIcat Plc 270575
TO FA 270575

371
 stock
purchased sold in
Shares
Regular may purchase on sale of F A Leg
market generally takes t 2
for settlement shares
order
eg
placed
on 0104123
Trade date settlement Date
settledon
Alding 04 09 23
a 04104 23

M Co has option to record the sale purchase on Trade date

Settlement date
Co should follow the
optedmethod consistently

illus 105
Assume was deducted on 041011 1
Off a
money
ofcourse the price which was
How much money was deducted Is go.gg quoted on the date of placing
the order will be deducted
i e lol

Co chooses trade date accounting FA will be recorded on

GA Trade date

Allo x1 FA Ale Da 10L

TOCKX Payable FY lol

ou oil X1 Payable All Da lol

TO CCB All 10 l

372
 04 ac x1
Faitreame
FA
Acta I
10.5 Futon R CMR
Bffealised ÉÉÉ
Gain FA Alc Da 0.5L o.se

TO OCI R MR 0.5L TO PIL O 5L

GB settlement Date Alding FA recorded on settlement Date

oiloilxi No entry

04 011 1 FA Ale Da 10C

TOCCB IOL

04 011 1
d FA
Fair value City CMR
AIin Futon
10 51 He FYI
FA Alc Da 0.5L FA AlcDa 0.5L
TO OCI R MR 0.5L TO PIL O 5L

so 373
 What if Fair

x
e is Based on
Latinos levelIinput
Ind AS 113

FX TP
calmpute Fu Pu of FCF EIR

Diff Btw Fr a
T.PT
to Pll irrespective of any relationship btw 2 parties

illustration 29 lessee s FA Sec Dep

CF CFA
Stf
Ur
0 40000 outflow
1 3 OY coupon

3rdarend 10000 inflow

Step Fair value of FA Fx Pu of foe EI

10000 X D F of 3rdyr 71
8163

eD.si
1837

Fx Basedon scenario2 Fx not Basedon level linpal

Scenayote level I input H relation lessor lessee
Diff s prepaid lease Rent
Diff Trf to Pll
JE FA 8163 IE FA 8163
aloftover 3yrs
PIL 1837 Prepaid
Lease Ray 1837
TO CCB 10,000 to CIB 10.000

374
375
Stepy ER 71

Step LAT Income Receive

ur Opn ht 71 Repay Cls

1 8163
2

3 noooo

12112 FA MAY

Fa s level I input Fu Pu of FCF EIR

C F CFA
step
Ur C't
o 1201 outflow
1 5 12
P'a inflow
son 120 L inflow

PH of FCF level I input

Step Fyof FA EIR as Fu
111 288

Step
li o in 288

8.712 lakhs Tst to PIL

step EIR 121

Step CAT ME

376
 At Fe
Question 10 pref shares Redeemable FL
Prin FL

CF Cfe
SEI C F

o 480000 inflow
1 3 19200 coupon outflow
p.a
3rd 720000 prine outflow
principal redeemed premium

FY of FL No Relation No CFI No level I input

step
FV TP
480000

184
Step EIR

Step MI
trend op Iet 187 Repayment as
31 03 16 gooooo 86400 19200 547200mL

KITE snare Incorrect

Dixit Eq R e Da Incorrect
path
900000
EI Pretshare Ey Alc Da 480000 to psc cop
Jut Div PLI Ale Da 86400 Da In RE 19200

For rectifying this

TO Div CR E Acc 19200 I reversed it
Jut
To Pref Share Fl Are 547200

377
 CB 980000 CIB 9.81

Elks to
Leggy tops Fe 4.8L

Rectification

0h15 Psc 697 480000

to Psc CFL 48

3111 Tut PLL 86400

To Fat Div 19200
to FLED

Mumtaz

378
 Question 17 LDR

Off Pref Shares Convertible option holder

I ptine Holder
Dividend sautnge
He
Non cumulative HI 47 7 7
not mandatory FL
HI Eg
Not a FL
Eg

Fc
Ste CF Crnandatory
Yr C F
O 100L inflow IL shares X 100

1 5 Not mandatory
5Myr 100L outflow

FY of FL CFI Prof FCF EIRA

step
100C X D F of Sthyr 77
71 29,862

Step Diff Eg
28,70 138
Step EIR 71

379
Step LATIFA
ur open JÉÉÉ Repaint Cls
31 031 2 71,29862 499090 76,29952
31 03 43 7628952 534027 81 62,979
XY 8126979 571409 87 39,388
45 8734388 611407 93,45795
46 9345795 654205 1.00.00.000 Before holder
chooses cash
option

IE
TU CIB Alc Dor 1.00.00.000
TO 44 Oops Fe 71 29,862
TO 41 oops Eg

Only these entries

31 3
1 Jut Exp All Da 999090 were asked
TO FL 499090

31131 6 FL Ale Da 10000.000

TOCIB 100,001000
I

311311 41 ours Eg Comp 28,70 138

TO RE 28,70 138

380
 Actin
Impairment of FA power gun
as Apply Impairment Provisio
6
Imp loss if any trt to Pll
I
FUTPL Not readto As s
loss Trt to Pll
Imp apply Imp pro already Beingtrf
to PIL

Computation of
He
Imp loss
2 methods

12 month Expected
lifetime
Expected
credit Iss
method credit loss method
12 month ECL lifetime Ecc
He He

FA risk is less FA disk is more

Ci e timely repayments i.e timely repayments are not read
read
are No less risk
i Risk is higher
I
off loss expected from FA
in upcoming 12 months off lossexpected from FA
the full life of FA
during
is computed

Loss Bifurcation in case of FA measured at FuTock

FA CFYTOCI Book Value 100

Ey 4 by 10
Fair value 90
Given
E3 II
Imploss Given Fair value loss Given
He
EE IL PLL 3 PIL OCI
FYlossCOI 7

TO FA CO

381
 ff.TT FaCeyroa R 1000
TO CIB 1000

31 3 X1 IL PLL Da 30
Fxloss OCI R1 Da 20
TO FA All 50

aloud Bank Ale Da 950 sale Paice

No profit Noloss on sale

TO FA ACC 950 C c.A

Sale of FA

Reclassification previous lossfrom Oct to Pll

aux

PIL Ale Da 20
TO OCICR 20

382
 Financial Guarantee For formal concepts Refer conceptBook Pg33.38
Ed 6

Ashwani Hd Dena 10am Prints 10 crore

Bank 181
Tengan
guarantee s
Ashman
u
for roam

187A
Éttainm
Jut without guarantee

Akita.rs Guarantee Diya Aldingof FG is done from Ak's

a
point of view
FL

Fa Booked at its Fair value on

Dayo gutwithout
Alling

U Tat 181 Jut 121

Benefits toAshwani
canings p Iii s
I l fer ther o Ger

2 I Per ther o Ger

3 lifer her 0.6 or

y l fer ther o Ger

g l ter ther o Ger

1,8763,02

383
 Initial Measurement

Daud IE CAK Books

PIL Ale Da 1,87 63,026

TO FG 1187163,026
FL Fyppy

If Akita charges comma to Ashwani

CIB Ale Da XX
to plz xx
subs
gyrating
Assume in Above
eg Ik Parent Ashwani Subs

Day
Inestin Subs 1,8763,026
TO FG 7,87 63,026

No comin In this case as in max cases

parent wont charge
comma to Subs

384
 Subsequent Meas of FG i e on Each ar end

Hif
Amortised Aunt of Foon trend Ant p'er ftp61 n why
f ao.zy higher
Converfism
He
Prinep Aut Jidr lab
a InbofDefault locr x 5 50.00.000
Zyada hai
Always given
in Ques
fixed show that

FGCLAT Notional saningein Lot

and one to
guarantee
Mr Opm ht ER igy Repayment Cls
I 118763,026 3377345 60,0 000 1,61 40,371

In reality the Repayment is Not occurring This is

above fat all

notional Just to compute the values

artery SEE
F G Ale Da
TO PIL
26.22.655
26,22 655
ÉÉq
4 t or

H
É
in FG will

1,87 63,0266 16140,371 Irrespective of

A
relationship
Day used

385
386
 Illust 127 LDR

FG Relation Parent Subs

F of Day
on

r Jataithout Guarantee 11 1 Savings D.FI i Pu

I 1 10,000 80000 30000
Iatyithgaranteelo
2 1110,000 80000 30000
3 1,101000 30000
73311

ÉÉulx Imistin Subs Moon 73311

PX
TO FG 73311

31 03 72 FG Ale Da 21936
TOPIC 21936
73311 51375

31 03 72 FG 21375
pple Da 21375
51375 300003
311031 2 311031
Es Meas 3

Amortised Aunt Ant asper Aan a 51375 27026

Prine Hurt Probof Default 10000 30000

101 14 CIOLX3 7

LAT
savings
ur
Opr Iet Éiy Repayment Ccs
31 03 x2 733 8064 Goooo 51375
31 03 X3 51375 5657 30000 27026
Estked XY 27026 Opn wont change

387
 8 De Recognition of F A

e
s
Fue De Recognition PartialDe Recognition
He He
Discussed Below
D Contractual cash flows fully
received from FA
2 Trf Sold the FA
Hi
FA CoA 100
120 Diff trf to Pll if
Soley any
413ACC129120
TO FA 100
TO PIL 200
Partial De Recog of FA
cede A I I
Case B servicefees case C
H H
3Definition 3 Definition Notmet
C u
Amy I met hint first last case A caseB
I
I Sale of fifty gap service service
Aking of Partial y
fees fees
De Recognition Alding of Partial full a
De Recog
PastDe Recognised
carrytaut FuuDe Recog c.A
DiffBtw Sells Price CA Part Retained Recognised
Trf to Pll again CX Fair value
Part Retained Diff
Bls Caray's
Aunt

388
 3 Definition Points for Partial De Recog eg Inustin Deb FA Itincip

Paat transferred comprises of specifically identified cashflows

Leg sale of Tut Sale of Prin
strip strip

Part tf comprises of fully proportionateshare of the cashflows

eg Sale of 401 Gut Prine sale of 30 Jut 4 35 Prine

Part trf comprises of fully prop share of specifically identified cashflow

Leg sale of 40 of Sale of 30 only Prine
only Jut

intermediary
as an
alsocharge acting
will feesfor
off seance
saveat Jatstrip Lucky
Ya to lucky
Inustin Deb
Rel ltd payment t
I t c f W
for syn 1 IL t
thÉI
Lucky
2 IL a coatget
lucky
3 IL x
a
g
my
ys
IL X
y
Iot
Sale of hot Jut any 3rd Saleof first 2yrsof gut
1st PartialDeRecag
Saleof 1007 Jut any caseA Sale of lastLassof Jut
p g guy and
say Saleoffirst201 Tat
Saleof 1007 Prine only 1st
Saleof last 407 Prine
Sale of 10101 print Jut FullDe Recog He
Noneof the 3 Def Points
case BJ

389
Egg sea ltd Rg133277

of CA Btw RaatDe Recognised PastRetained

Step Allocation
Bifurcate in FY Ratio Step 2
Total 21 10,00 000
I
1 179532 243 A
lot pain 23694 0
PartDe Recognised paat Retained
47 Fut 97601
825468
14 2
174532
lol x
11133410 24 sea 53237
174532
for ÉgÉÉJ
851

of Part De Recogh Part Retained

Step Fair value
Total FY 12 23,960

I 1
Fair value of PartDe Recag Blf Fil of Past Retained Given
1223960 213620 101 Drin 29000
1010340 41 Jut 119460
excl Senfees
184620 65160

21 Servicefees 65160

213620

step Bls Extract AfterPartialDetecog

EE ne Da 9.90.000 FA Retained ca
179532
TO FA Part 825908 Patni 23694
De Reeg
Jut 97601
To Pll Ale Gain 169532 seavice
53237
Asset

390
Ege Case B Assume Sea Ltd Retained Hint lot Prine first 91 Jut
H Esea icefees
Not falling under 3 Def
i it is case B E Service fees

Step step Same as above

Step É

CIB Alc Da 9.90.000

cot Pan Da 29000
41 Jut
21 SeanAssefa 65160
119400 Lex Fair value

TO FA full 10,00 000 C c.A

TO PIC BH 203620

BlSExtaaetAfterDe
RecogEI.ClantRetaineaD
F.N
107Prin 29000
44 Jut 119460
21 SeanAsset
65161 213620

Diff Btw case A Case B

Partial De Recopa Fall De Recog
PastRetained cA PartRetained F.v

391
 De Recognition of FA
I É

am
payment ÉÉ
Imf Aish
Factoring Factoring Factoring Laon
with full without with Partial

Recourse Recourse Recourse Bharat

H I
Risk Co Ak Co no
Retain Risk I
retained
Alding Dad H
Dois IOC pay 9L
CIB All Pg
Atami PILCBIF All Da
TO Dds Coc

or
CFA

Risk Retained with Akita

NoDe RecogofDdsonDay

CIBAlC9LT0DoxFin.li
ab 92

392
 Eg7 Pg 3328 Factoring with Patial Re course

Dad CB Ale Da 950000 Bls

Pll AK Da 50,000 DISK
TO Des FA J C'A 5,00 000 Asse liab 2012 CIA 20K

46
2
Ca
Continuing Involvement in Asset All Da 20,000
TO Associated liability Alc 20,000

Dad PIL AK Da 5000

To Asse liaby All 5000

Das paid 990000 lossoffactor io

CH supto20kyRisklo.J

Asse liable Ale Da 25000

PILCBID Alc Dr 50000 FIFaid4aoooo
loss offactor 80000
TO CIB 10,000
TO CIA 20,000 Co Risk20,0003

Das Paid 500000 loss of factor o Asseliaby Ak Dor25000

EB PIL Al Da 15000
Noentoux
Asse liab All Da 25000 TO CIA Alc 20000
TO CIA All 20000 TOMB ACC 20000
lossReversal s
To pie ofDay 1

114 A B
any

393
394
 Derivatives 3m
He tygapprecit Edeprggf
y
4th _Rk
value changes due to an IOC

underlying
No or little initial net insist
Future settlement

Éteasured FA Fl of Derivatives
thorough FXTPL

Illustration 118 LDR

oiloi X1 No
entry
Bls 313 1
31 31 1 PIL All Da 25000 DFL 25000
TO Derivativefinancial liab DFL 25000

30 06 X1 DFL Ale Da 10,000

tople loss
Reverse
10,000 ftp
30 09 X1 DFL Ale Da 15000
DFA ALC Dd 12000 BIS as at 30 09
TO PIL Blt 27000 DFA 12K

395
 sell mkt price
31112 X1 CIB Ale Da 20000 x 661 13,20ooo
PIL All Da CBH 52000 Gross
settlement
TO CIB 20,000 X 7681 13,601000

TODFA Reverse 12000

u
contract
purchase as per

Ma loss
25000 10000 27000 8 2000 90,000

Illustration 120 HE
He

written
put option Obligation to Buy

396
 Embedded Derivatives

Guns BM
If Siddhant
gy E kachra
Seth
Indian
Co
payment
in 7
Ig
F H
3rdcurrency
Deaitative
Portion

Embedded Derivatives
I
Hostcontract Derivative
contract

whether they are closely related

prod
NM
narco
us co in Earls yes
L
Mo Indian co purchasesfrom
us co R is in
am either He payment
is Noticedto 7 3rdcurrency
separate
do
seperateaping Alding
of Host
contract a
derivatives contract

397
398
 Illustration 100 LDR
Not closely related
Embedded Derivative

I I
Host contract Deainative
Hi contract
Solar Panel
Buy H
Delivery after 6 months To settle in Cusp
i e on 301061 1
Bay
HI ABG Books E No rate
v
fixed on
we could have Day
locked the to Bury
alloyx1 No
entry Bay price on

Day for
301061 1 Solar Panel Ale De 73250 million 30 06
TO Payable Ale E 3250 million 7651 Gmfeud
50 minion X Rate
7651

Reload Rate
Derivatives Alding
Day DeliveryDay 01011 1 No
fund Rate entry
He
765
301061 1 PIL Ale Da 750m
why DFL TO DEL 750M
we could have locked at
7651 But we did not 50m X 7651 47661
2 Now on 30.606 we have
to Buy at 2 66 5
i loss of 211
3016061 17 DFL AlcDe Éom
TOPayable 50m

ICAI Does Not 301001 1 Payable 53300m MX 7661

pass this
entry TO CIB zoom
3250 50

399
 Illustration 119 LDR
EmbeddedDerivatives

Host Contract
He Derive Contract
Sell Equip after a months To sell
HI
on Sale of
on 30.06 X1 why sell
we
H equip cue
we could have receive
Pay Delivery fund Rate
locked the sell I will sell it as
sale Book 2551
price at 551 my currency is E

Day 6mfund
or oilx1 No
entay Rate
E
301061 1 Retable Alc Da 550 L

To Equipment ssor.I.it i entom

Sf 101 2 55 9 31131 1 PIL Alena 1001

loss C TO DFL Alc FOOL

why
we could have locked 101 X 745 8 255 87
the sell price at 7551 fed Myod
06
But we did Not know 30.06

the date is E 451 30.06.11 DFL Reverse E1002

DFA E 50L 101X
TO PIL 15018557603

3000611 Dr 50L
Reagent 50L
301061 1 413 600L
8101 760 8
Eggy To Retable go
5504503

400
How to Differentiate Btw Derivatives Embedded Derivatives
concept ones Q
I
No host contract Host Contract
3rd Currency

Risk mitigate Kum

Hedge Alding

Cash flow Hedge

Here He will hedge future incoming cashflows

Aging
Hedge contract Remeasured thorough Oct R

401
Ques 14 LDR EELS
cash
1
fly hedge
Host Contract Hedge Contract
Hi Hi
Del Day spotRate To souls 7761
Sen I
Inventory after am Ratefixed
i e on 30109
Hedging Done
oil only No
entry
Becauseon
Selling
301091 1 Bank Trade Relable Ale Da 77200 Inventory we will
receive sell to
To Sale of Inventory 7200
Ren fromop convert into E
100 X 772
53
pone as
per ICAI

402
 Hedge Contract Alding
Yen
gain agar hoga
Iou X1 No toh bhi after 3
entry months hoga ie
on 30109 i disc
30 061 1 DFA Hedge Contract 72001197 gain by 3m
To PX OCI R 72001 197
4100 776 774
tTFfg_I1t 1.57
y.p.a i.e
p qtr

301091 1 DFA future's Contract Are Dd 50 303

TO OCI R 50 303
100 X 76 771 83 750067197 7303
I bason Already
Here we took a date Booked
instead of 772 as done
by ICAI

301911 Bank All Da 500

TO DFA future Cantoran 500

301091 1 OCCR All Da 500

TO Pll AK 500
to PID
Reclassify
gain of ace R

403
 How to differentiate Between theAldingd
EmbeddedDgintives
C
Host Contract is Host contract is hedged
Not Hedged

3rdcurrency Involved No 3rdcurrency involved

Difference in Alding
I
EmbeddedDerivatives CashHow Hedge Alding
t
t t t
Delivery afterGm Dean Contract
Heft 0
49
0
not locked
Price is
am feed DeliveryDay price is
Day Remeasure the pie
Rate Spot Remeasure thru OCIC
Rate Settlement Date
Reclassify OCICR
to PIL

404
405
Ques 16 Refer O B Directly

Ques 6 EI

Bls Extracts 31.3 x2 Pk CExtraets

Finance Income

IÉÉÉÉqte Gainondutrateoption 5250

option 15250 Futon 6 Deb EIR 12000

Deb 153000
Inustin Ey Shares 187500

Eerest Raeoption
Daud FA COption 10000 31 312 Fa 5250
TOCK 10000 TOPICGain 5250
I

97 150000 tht
TOCLB 150000 ur open
gut t Repaid Cls
1 I 51 153000
12000 9000
End FIogy I
12K 150000 67
CIB fatevalue assume
TO FA 9k
FUTOCICHR opted
Ifareassuame
PITI snacies 175000 3
la x2InstinEq.shares
OE
12500
TOMB 175000 TORIL 12500
50000 3.5 504 13.75 3 5 Icaeefggagination

406
151