Page 2 - 3. COMPILER QB - INDAS 16

INDAS 16 –

PROPERTY, PLANT & EQUIPMENT

(TOTAL NO. OF QUESTIONS – 18)

INDEX

S.No. Particulars Page No.
1 RTP Questions 3.1

2 MTP Questions 3.9
3 Past Exam Questions 3.15

RTPs QUESTIONS

Q1 (MAY 18)

A Ltd. purchased some Property, Plant and Equipment on 1st April, 20X1, and estimated their useful lives for the
purpose of financial statements prepared on the basis of Ind AS:

Following were the original cost, and useful life of the various components of property, plant, and equipment
assessed on 1st April, 20X1:

Property, Plant and Equipment Original Cost Estimated useful life
Buildings Rs 15,000,000 15 years
Plant and machinery Rs 10,000,000 10 years
Furniture and fixtures Rs 3,500,000 7 years

A Ltd. uses the straight-line method of depreciation. On 1st April, 20X4, the entity reviewed the following useful
lives of the property, plant, and equipment through an external valuation expert:

Buildings 10 years
Plant and machinery 7 years
Furniture and fixtures 5 years
There were no salvage values for the three components of the property, plant, and equipment either initially or

at the time the useful lives were revised.
Compute the impact of revaluation of useful life on the Statement of Profit and Loss for the year ending 31st
March, 20X4.

3.1