Page 10 - 1. COMPILER QB - INDAS 1

(1) Non-Current Assets
(a) Property, plant and equipment (net) 1,00,000
(b) Long-term Loans and Advances 40,000
(c) Other Non-Current Assets 50,000
(2) Current Assets
(a) Current Investment 30,000
(b) Inventories 80,000
(c) Trade Receivables 55,000

(d) Cash and Bank Balances 1,15,000
(e) Other Current Assets 51,000
TOTAL 5,21,000

Additional information of Softbharti Pvt Ltd.:
 Deferred tax liability of Rs. 6,000 is created due to following temporary difference: Difference in depreciation
amount as per Income tax and Accounting profit
 There is only one property, plant and equipment in the company, whose closing balance as at 31st March, 2020 is

as follows:

Asset description As per Books As per Income tax
Property, plant and equipment Rs. 1,00,000 Rs. 80,000
 Pre-incorporation expenses are deductible on straight line basis over the period of five years as per Income tax.
However, the same are immediately expensed off in the books.

 Current tax is calculated at 30% on PBT - Rs. 3,55,000 without doing any adjustments related to Income tax. The
correct current tax after doing necessary adjustments of allowances / disallowances related to Income tax comes to
Rs. 1,25,700.
 After the reporting period, the directors have recommended dividend of Rs. 15,000 for the year ending 31st March,
2020 which has been deducted from reserves and surplus. Dividend payable of Rs. 15,000 has been grouped under

‘other current liabilities’ along with other financial liabilities.
 There are ‘Government statuary dues’ amounting to Rs. 15,000 which are grouped under ‘other current liabilities’.
 The capital advances amounting to Rs. 50,000 are grouped under ‘Other non-current assets’.
 Other current assets of Rs. 51,000 comprise Interest receivable from trade receivables.
 Current investment of Rs. 30,000 is in shares of a company which was done with the purpose of trading; current

investment has been carried at cost in the financial statements. The fair value of current investment in this case is
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Rs. 50,000 as at 31 March, 2020.
 Actuarial gain on employee benefit measurements of Rs. 1,000 has been omitted in the financials of Softbharti
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private limited for the year ending 31 March, 2020.
The financial statements for financial year 2019-2020 have not been yet approved.
You are required to ascertain that whether the financial statements of Softbharti Pvt. Ltd. are correctly

presented as per the applicable financial reporting framework. If not, prepare the revised financial statements of
Softbharti Pvt. Ltd. after the careful analysis of mentioned facts and information.
Solution

If Ind AS is applicable to any company, then Ind AS shall automatically be made applicable to all the
subsidiaries, holding companies, associated companies, and joint ventures of that company, irrespective of
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