Imp standrds

IAS 12
16
19
24
34

ifrs 4
8
9
10
15
16
Ias 40 OR IAS 16

Hotel +Significant ancillary serives for guest=IP

Hotel +serives for Employee=Employee

Useful life is the life of asset we want to use and is always<Economic life

Reversal of impairment loss

Reimbursement is booked when it's 95% probability

Reimbursement=Compensation receivable
Never net offReimburesement with Prov
On receipt of payment
Bank 100
Prov 20
Reimbursement 80
Pnl 40

Provisions
IAS 37 me srf -ve resrtucturing k prov bnte hain

Provision for Restructuring in case of CLOSURE

Detailed formal plan approved by BOD
All the key stake holders affected from the decision will be communicated

Detailed formal plan

1 How much money will be utilized
2 Principal location
3 Business concern
4 How many employees will be compensated
5 When plan wil be implemented, if significant delay, then don’t make provision

Provision for Restructuring in case of SALE

Binding sale agreement

Costs ignored in above provisions

Relocation costs
Retraining employees to work in another dept
Marketing
Investment in other areas

Onerous contract
Cost of fulfiling the contract>The benefit
Provision will be made from lower of all possible scenairos of loss

Explain the relevant IAS first the answer the qs

Contingent liability (Dislclosed only)

Chances of outflow<=50%
reilable estimate
Past event
Recorded in Group accounts on the amount assesseed by the Parent

Contingent Asset (Recognized on >95%)

Dislcosed on <95%
From IAS 16 to irfs 5, differential amount will be recorded as impairment

When IFRS 5 ceases to apply, record at lower of

Recoverable amount
Update CA

Abandoned Assets
Assets abandoned because sales of product made from it has dropped, will remain to be measred at IAS16, even if it sube
this is because it was not intended to be sold

Separate presentation of Discontinued operations helps shareholders to know which operations will provide them econom

Presentation in FS
Shown as Disposal group assets in Current Assets in SOFP
Shown as Disposal group liabilities in Current Liabilities in SOFP

Disposal Group accounting under IFRS 5

Compare Updated carrying amount and FV-CTS whichever is lower

Impairment under IFRS 5

Fisrt Goodwill
then all other assets in scope of ifrs 5

Maximum reversal of impairment loss

Maximum reversal of impairment loss =Imp loss under IAS 36+ imp loss under IFRS 5

IFRS
When5 alm the condiitons oif ifrs5 are met,
On e of the conditions is that org mus tquote reasonable prices
In case of X, Co isnt asking for reasoinable price due to death, asset is not saleable in its present condition therfore can be
ed at IAS16, even if it subequently sold

will provide them economic benefits and aids them to make economic decisions

condition therfore can be applied

Employment benefits

Termination benefits
Retiring before retirement date

3
4

1
2
3

1
2
3

Current Service Costs-CSC(Exp)

Pv of benefits earned by employeees during the current year

Defined Benefit obligation (liability)

PV of all the benefits earned by the employees till to date,
CSC is part of DBO

Defined Benefit obligation

Op PV of DBO
+interest cost
+Current service cost & Past Service cost
-benfits paid
+/- Remeasurement of Component
Cl PV of DBO

Cl PV of DBO
Cl FV of planned assets
Liability

Planned Assets
Op
Add:Interest return
Add:Contribution paid
Less:beneifts paid
Remeasurement component (Bal fig)
Cl FV of Planned assets
Criticism on IAS 19
Assumption used by Actury are debatable
All componenets used in calculations are intereconnected confusing the shareholders
Calculations use assupmtions based on future events(retirement) hence are grey
Complex calculations

Answer drafting
Discuss the discount rates.
If cashflows are not risk-adjusted, Disc rate will be risk adjusted and VV.
PV and time value
Reimbursement if >95% probability
Reimbursement must not exceed the provision
Don’t net Reimbursement in BS but can be done in Pnl.
Last population pr deal krrhe thay, expected value or provision book kren
Single population hoto best estimated
 Short term benefits
Salary, bonuses
Termination benefits
Goldenhandshake
Post employment benefits
Other long term benefits
Residual category
Cumulative bonus

Defined cointribution plan

under Defined cointribution plan there is no guarantee of fix amount on retirement
Deficit in the funds will not be compensated by the company
Co will not face risk of changes in Acturial assumption

Defined benefit plan

There is a gyuarantee of ix amount on retirement
Deficit in the funds will be compensated by the company
Co will face risk of changes in Acturial assumption
Surplus in the funds belong to the company
Suplus is asset deficit is liability

ees during the current year

e employees till to date,

X
X
(X)
(X)
X/(X)
X

X
(X)
X

X
X
 X
(X)
X
X Actury btata hai

23
ons are intereconnected confusing the shareholders
d on future events(retirement) hence are grey

Disc rate will be risk adjusted and VV.

the provision
ut can be done in Pnl.
expected value or provision book kren
 Defined cointribution plan
1000 is per month salary
(1000*10%)
DC.Exp Dr Salary 100
Payable Cr 0 Bank 100
DCP Dr
or
Bank Cr
Salary 80
DC.exp 20
Bank 100
Actury btata hai
Unwinding of Discount cannot be treated as reversal of impairment loss
 1 Equity settled
2 Consideration payable will depend on the MV of Shares
3 Option to supplier whether equity or cash
11.1 31.48
0-20% Trade inve IFRS 9
20-50% Assoc Equity acc
>50% Subs

If FV of asset was not getting computed on acq date.

If it is determinable with next 12 months then it will be treated as same on acq date, otherwise if after 12 months, then will be
f after 12 months, then will be added to post acq RE
a 1 April 20X2
i) 000 N.0 % NCI
FV of inv 800,000 1,000,000 80% 200,000.0
FV of NCI

FV of NA
GW 320
imp 2004 -48
272 $
SP 700,000 1000000 70% 300,000.0

Sp 700,000
increase in NCI (625,379) RE @ 1 April 20X5 4,658,000
OCI-gain 74,621 FTY profit 123,792
Cl 4,781,792
GW 272,000
SC 1,000,000
FV-land 200,000
6,253,792

The disposal of share by 100,000 shares only reduced the holdoing of Lune to 70%. This shows that control is still retained. In c
change in control, any difference arising from comparing sale proceeds and changes in NCI is recorded in OCI-as a part of equi
the gain on disposal of investment in recorded in OCI. Since NCI is kept under fair value, 'Full goodwill' method where goodwil
impairment is shared between Parent and subsidiary. THerefore, Starligh would be allocated (20%) 4800 of the impairment to
20x4.
FV of Satrligh will be calulted on the disposal date to calculate NCI's fair value on tha date.Closing Retained earning (RE) will be
by adding opeing balance at 2005 to profit for 9 months .Share capital, Closing Retained earnigwill goodwill-net will be added
to arrive at the FV of starlight. NCI will be increased by 10% of the FV of compay, thus the same inrement is used to calculate g
disposal
 165056

don’t add share premium becz FV impacted in inculcated in the other items here

hat control is still retained. In case of no

orded in OCI-as a part of equity. Similarly,
odwill' method where goodwill and its
%) 4800 of the impairment to its Pnl in

g Retained earning (RE) will be calculated

will goodwill-net will be added to FV of land
nrement is used to calculate gain on