Page 58 - 16. COMPILER QB - INDAS 103

Statement of changes in Equity:
5. Equity share Capital

Balance at the Changes in Equity Balance at the
beginning of the share capital during end of the
reporting period the year reporting period
1,00,00,000 0 1,00,00,000

6. Other Equity
Reserves & Surplus Total
Capital Other Retained
Reserve reserves Earnings
Balance at the beginning 48,00,000 0 48,00,000
Profit or loss for the year (W.N.4) 0 14,14,000 14,44,000
Other comprehensive income for the year 0 0 0
Total comprehensive income for the year 0 14,14,000 14,14,000
Dividends 0 0 0
Gain on Bargain purchase on acquisition of a 37,70,000 37,70,000
subsidiary* (W.N.5)
Balance at the end of reporting period 37,70,000 48,00,000 14,14,000 99,84,000

* It is assumed that there exists no clear evidence for classifying the acquisition of the subsidiary as a bargain
purchase and, hence, the bargain purchase gain has been recognised directly in capital reserve. If, however,
there exists such a clear evidence, the bargain purchase gain would be recognised in other comprehensive
income and then accumulated in capital reserve. In both the cases, closing balance of capital reserve will be
Rs 37,70,000.

Working Notes:
1. Adjustments of Fair Value- Total Appreciation
Rs
Plant & Machinery (W.N.7) 11,50,000
Land and Building 20,00,000
Inventories 3,00,000
Less: Trade Payables (2,00,000)
32,50,000
2. Pre-acquisition reserves of Sub Ltd.

Rs
Other Reserves on 1.4.2017 20,00,000
Retained earnings Balance on 1.4.2017 6,00,000
Retained earnings balance as on 31.3.2018 16,40,000
Less: Retained earnings balance as on 1.4.2017 (6,00,000)
Add back: Dividend 4,00,000
Profit for the year 2017-2018 14,40,000
Profit for 6 months (14,40,000 x 6/12) 7,20,000
Share of Hold Ltd. 33,20,000

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