Page 7 - 12. COMPILER QB - INDAS 19

5 22,22,141 1,77,859* 6,00,000 30,00,000

*Due to approximations used in calculation, this figure is adjusted accordingly.

Q5. (Oct. 19 – 8 Marks)

RKA Private Ltd is an old company established in 1995. The company started with a very small capital base
and today it is one of the leading companies in India in its industry. The company has an annual turnover of

Rs. 11,000 crores & planning to get listed in the next year.
The company has a large employee base. The company provided a defined benefit plan to its employees.

Following is the information relating to the balances of the fund’s assets and liabilities as at 1st April, 20X1
and 31st March, 20X2.

Rs. in lacs
st
st
Particulars 1 April, 20X1 31 March, 20X2
Present value of benefit obligation 1,400 1,580
Fair value of plan assets 1,140 1,275
For the financial year ended 31st March, 20X2, service cost was Rs. 55 lacs. The company made a

contribution of an amount of Rs. 111 lacs to the plan. No benefits were paid during the year.

Consider a discount rate of 8%.
As per Ind AS, you are required to -
a) Compute the balance(s) of the company to be included its balance sheet as on 31st March, 20X2 and

amounts to be recognized in the statement of profit and loss and other comprehensive income for the year

ended 31st March, 20X2.
b) Give the journal entries in respect of amount(s) to be recognized.

Solution

Extract of the Balance Sheet of RKA Private Ltd as at 31st March, 20X2
Closing net defined liability (1,580 – 1,275) = 305 Lacs

Extract of the Statement of Profit or Loss of RKA Private Ltd for the year ended 31st March, 20X2
Particulars Rs. in lacs
Service cost 55

Net interest (Refer W.N.1) 21
Profit or loss 76
Other comprehensive income:
Remeasurements (Refer W.N.2) 80
Total 156

(b) Journal entries in the books of RKA Private Ltd

Particulars Rs in lacs Rs in lacs
Profit & Loss Dr. 76
Other comprehensive income Dr. 80
To Cash (Contribution) 111
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