Page 15 - 32. ANALYSIS OF FS

down occurs. Hence, the inventories should be valued at Rs 1,200 lakh and write down of Rs 300 lakh
(Rs 1,500 lakh – Rs 1,200 lakh) will be added to the operating cost of the entity.

4. In the absence of the declaration date of dividend in the question, it is presumed that the dividend is
declared after the reporting date. Hence, no adjustment for the same is made in the financial year 2018-
2019. However, a note will be given separately in this regard (not forming part of item of financial
statements).
5. Accrued income will be shown in the Statement of Profit and Loss as ‘Other Income’ and as ‘Other
Current Asset’ in the Balance Sheet.

6. Since the deferred tax liabilities and deferred tax assets relate to taxes on income levied by the same
governing taxation laws, these shall be set off, in accordance with IndAS12. Thenet DTA of Rs 300 lakh
will be shown in the balance sheet.
7. As per Division II of Schedule III to the Companies Act, 2013, the Statement of Profit and Loss should

present the Earnings per Equity Share.
8. In Ind AS, Assets are not presented in the Balance sheet as ‘Fixed Asset’; rather they are classified
under various categories of Non-current assets. Here, it is assumed as ‘Property, Plant and Equipment’.
9. The presentation of the notes to ‘Trade Receivables’ will be modified as per the requirements of Division
II of Schedule III.

Balance Sheet of Abraham Ltd. For the year ended 31stMarch, 2019
Note No. (Rs in lakh)
ASSETS
Non-current assets
Property, plant and equipment 5,000
Deferred tax assets 1 300
Current assets
Inventories 1,200
Financial assets
Trade receivables 2 1,100
Cash and cash equivalents 2,000
Others financial asset (accrued interest) 300
TOTAL 9,900
EQUITY AND LIABILITIES
Equity
Equity share capital 3 1,000
Other equity 4 2,000
Non-current liabilities
Financial liabilities
Long-term borrowings 5 5,000
Current liabilities
Financial liabilities
Trade payables 300
Others 6 710
Short-term provisions (300 + 400) 7 700
Other current liabilities 8 190

32.14