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Concept of Higher or Lower

The document discusses various accounting standards related to impairment loss, business combinations, and earnings per share calculations. It emphasizes the concept of recognizing the higher or lower of certain values based on specific accounting guidelines such as Ind AS 36 and Ind AS 105. Additionally, it covers the treatment of discontinued operations and the identification of reportable segments under Ind AS 108.

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yogeshdevkar86
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24 views15 pages

Concept of Higher or Lower

The document discusses various accounting standards related to impairment loss, business combinations, and earnings per share calculations. It emphasizes the concept of recognizing the higher or lower of certain values based on specific accounting guidelines such as Ind AS 36 and Ind AS 105. Additionally, it covers the treatment of discontinued operations and the identification of reportable segments under Ind AS 108.

Uploaded by

yogeshdevkar86
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Concept of HIGHER LOWER

FULCTD
Recoverable amount higher
v u
nd AS 36

Reversal of Impairment loss


Ind AS 36
Restricted to LOWER of
CA if no Ind AS36 20
RA 25 18
Reversal is restrict
fill 20
CA 15 20

Gain on reversal 5

To

Asset_

cat
loss
RIO
i

Life of asset

100 10 8
20
Impairment loss lower of
Ind AS 105 CA
FULCTD

Plan
change of
Lower of
Ind AS CA if no 105
105
RA
Ind AS 103 BUSINESS COMBINATION

1 Replacement awards
Ind AS 102
Add to
PC
J
Pre combination Post combination

Fair value of
Original awards

Expired period
Total period
vesting

Higher of
vesting period
Original
Revised Vesting period Expired till
DOA Rem
to be served
RevisedVP 211
1

Precomb 121
5 4.8

Inv Dr
To SBP reserve
Re acquired Rights

Net assets Reduce PC


by
settlement amount
Fair value Lower of

FV of Rights or

Termination Penalty
If PAY PHDBO
Ceiling adjustment
nd AS 19

net assets Lower of


Recognise

FV of surplus net asset or

FV of Refunds

EPS BEPS DEPS

Exception
Discontinued operation Ind As 33 and 1057

options

calculate Basic and Diluted EPS

For DUCK LTD contd


Finned Dis cont overall
ops op
BEPS 252000 168000
80000 412 80000

3.15 sh 5.255h 2.1 55


DEPS 252000 dec 420000 168000
96000 96000 96000
2.625 shr 4.375 5h 1.75 5
Even if DEPS BEPS but due to discontinued
operation still increased DEPS will be reported

For SWAN LTD

Continued VII cont overall


ops op
BEPS 180000 325920 145920
96000 96000 96000
1.875 she 3.395 sh 1.52 sh
EPS 180000 inc 325920 145920
121600 121600 121600
1.48 she 2.68 sh 1.2 5h
Since DEPS of continued of 1 48
BEPS
of cont op 1 875

We will consider BEPS DEPS as


DEPS can't be higher than BEPS
9 Identification of Reportable Seg
nd AS 108

Limit I 10 or more of Results

183
9

Total Profit 780 1500 6000


8220
Total loss 2300 4500 6800

Higher 8280
10 f 828
Financial
guarantee

I 1
PV of savings Exp loss or

profsavings
Inv in s be higher
To FG

continued involvement asset

Recognise
4A lower of
Guarantee amount or
CA of Receivables
Most
advantageous market
Market with adv MP Transp
highest costs
Transe
costs

valn
Inventory
And AS 2
lower of
cost or

NRV

Indemnification asset can't exceed


Provision
certain
virtually
PSL net
B s
nett
else asset
contingent
Provision for overous contracts
6

ELI
100 5

10001
Loss of execution Perilty on

of contract cancellation of
Intact
schedule III Limit for materiality
1
of Revenue from op or

10,00000m
higher

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