Page 3 - 11. COMPILER QB - INDAS 105

Asset/ (liability) Carry amount as on 15th
September 20X1 (In Rs ‘000)

Attributed goodwill 200
Intangible assets 930
Financial asset measured at fair value through other comprehensive income 360

Property, plant & equipment 1,020
Deferred tax asset 250

Current assets – inventory, receivables and cash balances 520
Current liabilities (870)
Non-current liabilities – provisions (250)
Total 2,160

Entity A proposed to sell the disposal group at Rs 19,00,000. It estimates that the costs to sell will be

Rs70,000. This cost consists of professional fee to be paid to external lawyers and accountants.
As at 31st March 20X2, there has been no change to the plan to sell the disposal group and entity A still
expects to sell it within one year of initial classification. Mr. X, an accountant of Entity A remeasured the

following assets/ liabilities in accordance with respective standards as on 31st March 20X2:

Available for sale: (In Rs‘000)
Financial assets 410
Deferred tax assets 230

Current assets- Inventory, receivables and cash balances 400
Current liabilities 900
Non- current liabilities- provisions 250

The disposal group has not been trading well and its fair value less costs to sell has fallen to Rs 16,50,000.
Required:

What would be the value of all assets/ labilities within the disposal group as on the following dates in
accordance with Ind AS 105?

(a) 15 September, 20X1 and
(b) 31st March, 20X2

Solution

(a) As at 15 September, 20X1

The disposal group should be measured at Rs18,30,000 (19,00,000-70,000). The impairment write down of Rs
3,30,000 (Rs21,60,000 – Rs18,30,000) should be recorded within profit from continuing operations.

The impairment of Rs3,30,000 should be allocated to the carrying values of the appropriate non-current assets.
Asset/ (liability) Carrying value Impairment Revised carrying

as at 15 June value as per IND AS
2004 105
Attributed goodwill 200 (200) -

Intangible assets 930 (62) 868
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