Page 18 - 30. COMPILER QB - IND AS 101

TOTAL ASSETS 85,00,000
(1) Non-Current Assets
(a) Property, Plant & Equipment (net) 20,00,000
(b) Intangible assets 2,00,000
(c) Goodwill 1,00,000
(d) Non-current Investments 5,00,000

(e) Long Term Loans and Advances 1,50,000
(f) Other Non-Current Assets 2,00,000
(2) Current Assets
(a) Current Investments 18,00,000
(b) Inventories 12,50,000
(c) Trade Receivables 9,00,000
(d) Cash and Bank Balances 10,00,000
(e) Other Current Assets 4,00,000
TOTAL 85,00,000

Additional Information (All figures are in ’000) :
1. Other current liabilities include Rs 3,90,000 liabilities to be paid in cash such as expense payable, salary

payable etc. and Rs 60,000 are statutory government dues.
2. Long term loans and advances include Rs 40,000 loan and the remaining amount consists of Advance to
staff of Rs 1,10,000.

3. Other non-current assets of Rs 2,00,000 consist of Capital advances to suppliers.
4. Other current assets include Rs 3,50,000 current assets receivable in cash and Prepaid expenses of Rs
50,000.
5. Short term provisions include Dividend payable of Rs 2,00,000. The dividend payable had been as a result
of board meeting wherein the declaration of dividend for financial year 2017 -2018 was made. However, it
is subject to approval of shareholders in the annual general meeting.

Chief financial officer of Shaurya Limited has also presented the following information against corresponding
relevant items in the balance sheet:
a) Property, Plant & Equipment consists of a class of assets as office buildings whose carrying amount is Rs
10,00,000. However, the fair value of said office building as on the date of transition is estimated to be

Rs 15,00,000. Company wants to follow a revaluation model as its accounting policy in respect of its
property, plant and equipment for the first annual Ind AS financial statements.
b) The fair value of Intangible assets as on the date of transition is estimated to be Rs 2,50,000. However,
the management is reluctant to incorporate the fair value changes in books of account.
c) Shaurya Ltd. had acquired 80% shares in a company, Excel private limited few years ago thereby
acquiring the control upon it at that time. Shaurya Ltd. recognised goodwill as per erstwhile accounting

standards by accounting the excess of consideration paid over the net assets acquired at the date of
acquisition. Fair value exercise was not done at the time of acquisition.
d) Trade receivables include an amount of Rs 20,000 as provision for doubtful debts measured in accordance
with previous GAAP. Now as per latest estimates, the provision needs to be revised to Rs 25,000.
e) Company had given a loan of Rs1,00,000 to an entity for the term of 10 years six years ago. Transaction

costs were incurred separately for this loan. The loan carries an interest rate of 7%. The principal amount
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