Page 78 - 16. COMPILER QB - INDAS 103

SOLUTION

st
Calculation of Big Ltd.’s interest in Dig Ltd at the year ended 31 March, 2020 as per Equity method:
Amount (Rs.)
Cost of investment (35%) 3,00,000
Share in profit after adjustment (Refer Working Note) 30,625
Dividend received by Big Ltd from Dig Ltd (35% x Rs. 11,000) (3,850)

Big Ltd.‖s share of loss in OCI w.r.t Dig Ltd.‖s loss from (5,250)
remeasurement of defined benefit liability (35% x Rs. 15,000)

Big Ltd.’s interest in Dig Ltd at the end of the year 3,21,525
Working Note:
Computation of Share in profit after adjustment
Amount (Rs.)

Big Ltd.‖s share of Dig Ltd.‖s after tax profit (35% x Rs. 1,00,000) 35,000
Less: Big Ltd.‖s share of depreciation based on fair value
(35% x Rs. 12,500*) (4,375)
Share in profit after adjustment 30,625
*depreciation on upward revaluation = 1,00,000 / 8 = 12,500

Q33. (July. 21) – (Similar to Q19)
Given below are the balance sheets of a group of companies comprising LX Limited, MX Limited and NX
Limited as on 31st March 2021: Rs in lakh
Particulars LX Limited MX Limited NX Limited
Assets
Non-current Assets
Property, Plant and Equipment 1,500 1,600 1,400
Investment
17.0 lakh share in MX Limited 2,620 - -
9.6 lakh shares in NX Limited - 1,350 -
Current Assets
Inventories 1,230 730 1,180
Financial Assets
Trade Receivables 1,415 270 620
Bills Receivables 650 60 -
Cash in hand and at Bank 1,085 90 150
8,500 4,100 3,350
Equity and Liabilities
Shareholders' Equity
Share Capital (Rs 100 per share) 3,400 2,000 1,600
Other Equity
Reserves 1,150 810 580
Retained earnings 1,030 600 310
Current Liabilities
Financial Liabilities
Trade Payables 2,920 690 805
16. 77