Page 12 - 33. FR RTP NOV. 22

 In 20X1, Company S‖s profit was Rs. 30,000.
Following facts are in respect of Company P:
 Company P has 5,000 ordinary shares outstanding.
 In 20X1, Company P‖s profit (excluding any distributed and undistributed earnings of subsidiaries) was Rs.

7,000.
 The options outstanding are dilutive at P‖s level.
Determine the diluted EPS of Company P for the year 20X1. Ignore income tax.

Ind AS 32 and Ind AS 109

Question 18
On 1st April, 20X1 an entity granted an interest-free loan of Rs. 5,00,000 to an employee for a period of
three years. The market rate of interest for similar loans is 5% per year.
On 31st March, 20X3, because of financial difficulties, the employee asked to extend the interest-free loan for

further three years. The entity agreed. Under the restructured terms, repayment will take place on 31st March,
20X7. However, the entity only expects to receive a payment of Rs. 2,50,000, given the financial difficulty of
the employee.
Explain the accounting treatment on initial recognition of loan and after giving effect of the changes in the

terms of the loan as per Ind AS 109. Support your answer with Journal entries and amortised cost calculation,
as on the date of initial recognition and on the date of change in terms of loan.

Ind AS 40 and Ind AS 16

Question 19

An entity owns a two-storey building. Floor 1 is rented out to independent third parties under operating leases.
Floor 2 is occupied by the entity‖s administration and maintenance staff. The entity can measure reliably the
fair value of each floor of the building without undue cost or effort. How the same will be classified /
presented in the balance sheet as per relevant Ind AS. What will be the accounting treatment as per relevant
Ind AS on initial and subsequent date?

Ind AS 8 and Ind AS 34

Question 20
While preparing interim financial statements for the half-year ended 30th September, 20X1, an entity

notes that there has been an under-accrual of certain expenses in the interim financial statements for the
first quarter ended 30 th June, 20X1. The amount of under accrual is assessed to be material in the context
of interim financial statements. However, it is expected that the amount would be immaterial in the context
of the annual financial statements. The management is of the view that there is no need to correct the error
in the interim financial statements considering that the amount is expected to be immaterial from the point

of view of the annual financial statements. Whether the management‖s view is acceptable?

33.11