Page 27 - 16. COMPILER QB - INDAS 103

Rs. In lakhs DTL amount in Deferred tax Total DTL in Pharma
Dorman Ltd.’s impact of fair value Ltd’s consolidated
Balance Sheet adjustments financial statements
Plant and equipment 300 ([7,000- 300 ([1,000 × 30%) 600
6,000] × 30%)
Brand names 0 1,290 (4,300 × 1,290
30%)
TOTAL 300 1,590 1,890

(ii) Goodwill is effectively the 'balancing item' in the equation, applying the requirements of lnd AS 103, para
32. The consideration transferred is Rs. 12,000 lakhs and the net of the acquisition date amounts of the
identifiable assets acquired and the liabilities assumed measured in accordance with Ind AS 103,
including the deferred tax assets and liabilities arising, is Rs. 9,900 lakhs.
Therefore, Goodwill = 12,000 - 9,900 = 2,100 lakhs
Author’s Note: DTL on Branch should not be created since it is clearly mentioned in the question that “No

tax deductions are available for the same”
Hence instead of 9900 lacs of Net Assets, it should be 11250 lacs

Q13. (October 18 – 20 marks)
X Ltd. and Y Ltd. amalgamated on and from 1st April, 2017. A new company XY Ltd. with shares of Rs. 10
each was formed to take over the businesses of the existing companies.
Summarised Balance Sheet as on 31st March, 2018

INR in '000
ASSETS Note No. X Ltd Y Ltd
Non-current assets
Property, Plant& Equipment 8,500 7,500
Financial assets
Investment 1,050 550
Current assets
Inventories 1,250 2,750
Trade receivables 1,800 4,000
Cash and Cash equivalents 450 400
13,050 15,200

EQUITY AND LIABILITIES
Equity
Equity share capital (of face value of INR 10 each) 6,000 7,000
Other equity 1 3,050 2,700
Liabilities
Non-current liabilities
Financial liabilities
Borrowings (12% Debentures) 3,000 4,000
Current liabilities
Trade payables 1,000 1,500
13,050 15,200
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