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Calculate the impairment loss, if any. Ignore decimals.

(b) EITHER

As a part of its sales promotion activities, MIL distributes office utility articles along with its product
catalogues to medical practitioners to familiarize & encourage them to prescribe medicines manufactured by it.
No conditions are attached with the items distributed.
Whether the distribution of office utility articles to medical practitioners is covered by Ind AS 115 ‘Revenue
from Contracts with Customers’? If not, how should the same be accounted by MIL? Give reasons.

OR
A Company invested in Equity shares of another entity on 15 th March for Rs. 20,000. Transaction Cost = Rs.
400 (not included in Rs. 20,000)
Fair Value on Balance Sheet date i.e. 31st March, 20X1 = Rs. 24,000. Pass necessary Journal Entries when
Financial Asset is accounted as FVTPL. INDAS 109

(c) INDAS 109 On 1st April, 20X1, S Ltd. issued 30,000 6% convertible debentures of face value of Rs. 100 per
debenture at par. The debentures are redeemable at a premium of 10% on 31 st March, 20X5 or these
may be converted into ordinary shares at the option of the holder. The interest rate for equivalent
debentures without conversion rights would have been 10%. The date of transition to Ind AS is 1st April,
20X3. Suggest how should S Ltd. account for this compound financial instrument on the date of

transition. The present value of Rs. 1 receivable at the end of each year based on discount rates of 6%
and 10% can be taken as:
End of year 6% 10%
1 0.94 0.91
2 0.89 0.83
3 0.84 0.75
4 0.79 0.68

Question 4

(a) The Company has taken a particular application software of a supplier namely, Crystal Systems Limited,
which is available on a cloud infrastructure managed and controlled by the Crystal Systems Limited. The
Company contracts to pay a fee of Rs. 5,00,000 per month in exchange for a right to receive access to
the Crystal Systems Limited's application software for 2 years. The Company accesses the software on

need basis over the internet. The contract does not convey any rights to New Age Technology Limited
over the tangible assets of the Crystal Systems Limited.
The Chief Accountant of New Age Technology Limited has sought your advice, whether the IT should account
for this transaction for use of software with Crystal Systems Limited in terms of Ind AS 116 leases or an
intangible asset in terms of Ind AS 38 ‘Intangible Assets’. Help him to understand your assessment. (INDAS
38 & 116)

(b) During 20X1-20X2, XYZ Ltd. completed a large contract to supply a customized equipment for one
customer for a total consideration of Rs. 5,00,000 received fully in cash. As a special arrangement and in
order to procure the customer's order, XYZ Ltd agreed to maintain the equipment for three years from

the date of installation. Had there been no maintenance requirement, the sale would have been for an

34.4