Page 76 - 16. COMPILER QB - INDAS 103

Notes:
1. Since the question required not to prepare Notes to Account, the column of Note to Accounts had not
been drawn.

2. It is assumed that shares were issued during the year 2018-2019 and entries are yet to be made.

Working Notes:
1. Calculation of purchase consideration at the acquisition date i.e. 1 April, 2017
st
Rs. in 000s

Payment made by A Ltd. to S Ltd.
Cash 1,000.00
Equity shares (2,00,000 shares x Rs. 1.80) 360.00

Present value of deferred consideration (Rs. 5,00,000 x 0.75) 375.00
Total consideration 1,735.00
2. Calculation of net assets i.e. net worth at the acquisition date i.e. 1st April, 2017
Rs. in 000s

Share capital of S Ltd. 500.00
Reserves of S Ltd. 125.00

Fair value increase on Property, Plant and Equipment 200.00
Net worth on acquisition date 825.00
3. Calculation of Goodwill at the acquisition date i.e. 1 st April, 2017 and 31st March, 2019
Rs. in 000s

Purchase consideration (W.N.1) 1,735.00
Non-controlling interest at fair value (as given in the question) 380.00
2,115.00

Less: Net worth (W.N.2) (825.00)
Goodwill as on 1st April 2017 1,290.00
Less: Impairment (as given in the question) 258.00
Goodwill as on 31st March 2019 1,032.00

4. Calculation of Property, Plant and Equipment as on 31st March 2019
Rs. in 000s
A Ltd. 5,500.00
S Ltd. 1,500.00

Add: Net fair value gain not recorded yet 200.00
Less: Depreciation [(200/5) x 2] (80.00) 120.00 1,620.00

7,120.00

5. Calculation of Post-acquisition gain (after adjustment of impairment on goodwill) and value of
NCI as on 31st March 2019
Rs. In 000s Rs. in 000s
NCI A Ltd.
(20%) (80%)
Acquisition date balance 380.00 Nil
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