[CAF-05] IAS-38 (Intangible Assets)

1. Page 214 (Asset, Intangible, Carrying amount, Depreciable amount, Impairment Loss, Amortization,
Useful life )
2. Page 215, 216
3. Page 217 (Para 27, 28, 29, 30, 31)
4. Q.1 (Page 238)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-38 (Intangible Assets)

1. Page 220, 221 (Para 59)

2. Q.8 (Page 242)
3. Q.3 (Page 239)
4. Self made Question as attached below

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-38 (Intangible Assets)

1. Page 221 (Para 58, 65, 66, 67)

2. Past Paper Q.8 (Page 263)
3. Past Paper Q.15 (Started) (Page 267)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-38 (Intangible Assets)

1. Past Paper Q.15 (Completed)(Page 267)

2. Page 218
3. Q. 4, 5, 6 (Page 239, 240)
4. Past Paper Q.5(b)(i) (Page 261)

1. Past Paper Q.17 (Page 268)

1. Learn Integrity ,objectivity, Professional competence and due care,

Confidentiality

Crescent College of Accountancy | P a g e | 1

[CAF-05] INTANGIBLES (IAS-38)

1. Question-5 (ii,iii,iv) page 261

2. Question-6 (Page 261)
3. Question-17 (page 268)
4. Concept of Amortization and impairment

Same as class work

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-38 (Intangible Assets)

1. Past Paper Q.6 (Completed) (Page 261)

2. Past Paper Q.9 (Page 265)
3. Page 229, 230 (LO.7 SIC-32)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-38 (Intangible Assets)

1. Past Paper Q.16 (Page 268)

2. Page 228(Para 100)
3. Q.7, 7A (Page 241)
4. Past Paper Q.9 (Page 269)
5. Page 231, 232 (LO.8 Disclosure)

1. Past Paper Q.18 (Page 269)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-38 (Intangible Assets)

1. Page 232
2. Page 225, 226, 227 (LO.3)
3. Past Paper Q.21 (Page 271)
4. Past Paper Q.18 (Page 269)

1. Past Paper Q.10 (Page 265)

2. Past Paper Q.3 (Page 260)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-41 (Agriculture)

1. Page 228 (LO.4)

2. Page 221 (Para 63)
3. Page 222 (Para 71, 66, 53, 64, 49)
4. Page 233
5. Page 235 (Solving Theory Questions)
6. Past Paper Q.4 (Page 260)

1. Q.1 (Page 633)

1. Read tree After page 308

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-41 (Agriculture)

1. Page 630 (Read only)

2. Page 619
3. Page 620 (Illustrative example-1 Only)
4. Page 621, 622
5. Q.3, 4 (Page 655)

1. Past Paper Q.20 (Page 270)

1. Various MCQs

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-41 (Agriculture)

1. Page 623
2. Page 624 (Para 30, 31, 32)
3. Past Paper Q.2 (except Adj. (ii), (vii)) (Page 651)
4. Past Paper Q.1 (Page 651)
5. Q.11 (Page 640)

1. Various MCQs

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-41 (Agriculture)

1. Q.3, 4, 5 (Page 635)

2. Class example related to price and physical change as attached below
3. Page 620 (Bearer Plant)
4. Class example related to Bearer plant as attached below
5. 1st Page after page 669

1. Q.12 (Page 640) and same as classwork

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-41 (Agriculture)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IAS-41 (Agriculture)

1. Page 618 (Scope)

2. Page 624 (Government Grant)
3. Example-1, 1A (Page 624, 625)
4. Disclosure (Page 625, 626, 627)
5. Page 628
6. Past Paper Q.2 (Page 651)
7. Disclosure as attached below

1. Past Paper Q.8 (Page 263)

1. Various MCQ’s

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-41 (Agriculture)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IAS-21 (Foreign Exchange)

1. Page 625-627 (Disclosure Summary)

2. Q.13, 14 (Page 641)

1. Q.2, 4, 5 (Page 499)

2. Q.9 (Page 502)
3. Monetary/ Non-Monetary Discussion
4. Handwritten page 1

1. Q.6, 7 (Page 500)

2. Q.8 (Page 501)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-21 (Foreign Exchange)

1. Page 493, 494 (Foreign currency, Functional currency, Presentation currency)

2. Example-1, 2 (Page 497)
3. Past Paper Q.1 (Page 536)
4. Q.10, 11 (Page 503)

1. Past Paper Q.1 (Page 651)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-21 (Foreign Exchange)

1. Q.4 (Page 539)

2. MCQ.9 (Page 547)
3. Page 498, 493, 494, 495, 496

1. Q.2 (Page 538)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-21 (Foreign Exchange)

CLASS EXAMPLES

Integrity
Baji Shabana is a senior accountant at a textile company. One day, she realizes that a junior
accountant made a small mistake in calculating the tax liability. Fixing it would slightly increase
the company's tax payment.

Some colleagues suggest ignoring the mistake since it's "too small to matter." But integrity
means being honest and doing the right thing, even when it’s difficult or no one would notice.

Baji Shabana decides to correct the mistake and inform the management because she believes in
being truthful and maintaining the company’s trust and reputation.

Objectivity
Sara is an accountant at a large company. Her manager asks her to prepare a financial report for
investors. While preparing the report, Sara notices some expenses were incorrectly recorded to
make profits look higher. The manager hints that she should "leave it as it is" to make the
company look better.

However, objectivity means Sara must stay unbiased and not let pressure or personal interests
influence her work. So, she chooses to correct the mistake and report the true financial position,
even if it might upset her manager.

Objectivity
Mohin works as an internal accountant at a construction company. One day, he is reviewing
costs for a major project and finds out that a supplier, who happens to be a close friend of his,
has overbilled the company.

Even though Mohin personally likes his friend and doesn’t want to create trouble, objectivity
means he must stay fair and honest. Mohin reports the overbilling to his supervisors, making sure
his personal relationship does not affect his professional judgment.

Professional competence and due care

Mark, an accountant at a small business, frequently makes errors in financial reporting, such as
misclassifying expenses and failing to follow proper accounting standards. He misses important
deadlines for tax filings, leading to penalties. His inability to properly reconcile accounts results
in inaccurate financial data, which misleads management when making decisions. Additionally,
Mark lacks communication with other departments, causing confusion over budget allocations
and financial planning.

Crescent College of Accountancy | P a g e | 2

[CAF-05] IAS-21 (Foreign Exchange)

1. Q.15 (Page 506)

2. MCQs 12, 13 (Page 547)

1. Page 590, 591, 592

2. Class Examples as attached to next page
3. Past Paper Q.5(Fundamental Principles only)(Page 606)

1. MCQ’s (1, 2, 3, 4, 5, 6, 7, 10, 11, 14, 15, 16, 17, 19, 20)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-21 (Foreign Exchange)

CLASS EXAMPLES

Integrity
Baji Shabana is a senior accountant at a textile company. One day, she realizes that a junior
accountant made a small mistake in calculating the tax liability. Fixing it would slightly increase
the company's tax payment.

Some colleagues suggest ignoring the mistake since it's "too small to matter." But integrity
means being honest and doing the right thing, even when it’s difficult or no one would notice.

Baji Shabana decides to correct the mistake and inform the management because she believes in
being truthful and maintaining the company’s trust and reputation.

Objectivity
Sara is an accountant at a large company. Her manager asks her to prepare a financial report for
investors. While preparing the report, Sara notices some expenses were incorrectly recorded to
make profits look higher. The manager hints that she should "leave it as it is" to make the
company look better.

However, objectivity means Sara must stay unbiased and not let pressure or personal interests
influence her work. So, she chooses to correct the mistake and report the true financial position,
even if it might upset her manager.

Objectivity
Mohin works as an internal accountant at a construction company. One day, he is reviewing
costs for a major project and finds out that a supplier, who happens to be a close friend of his,
has overbilled the company.

Even though Mohin personally likes his friend and doesn’t want to create trouble, objectivity
means he must stay fair and honest. Mohin reports the overbilling to his supervisors, making sure
his personal relationship does not affect his professional judgment.

Professional competence and due care

Mark, an accountant at a small business, frequently makes errors in financial reporting, such as
misclassifying expenses and failing to follow proper accounting standards. He misses important
deadlines for tax filings, leading to penalties. His inability to properly reconcile accounts results
in inaccurate financial data, which misleads management when making decisions. Additionally,
Mark lacks communication with other departments, causing confusion over budget allocations
and financial planning.

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-16 (Leases)

1. Q.1, 2 (Page 72, 73)

1. Q.1 (Page 87)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.3 (Page 73)

2. Q.4 (Page 74)

1. Q.6 (Page 88)

1. Q.5 (Page 656) (before solving this Question you may revise Q.5 on page 635 for practice purpose)

1. Reaming MCQ’s

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Example 2 (Page 42)

2. Concept of GRV
3. Past Paper Q.3 (Page 149)
4. Class example

1. Q.7 (Page 89)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.18 (Page 82)

2. Q.5 (Page 74)
3. Page 35 (Lease Payment)

1. Q.3 (Page 87)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.05(page 149)
2. Q.13 (page 152)
3. Page 123 note

1. Q.9,10(page 90)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.8 (iii) (Page 90)

2. Past Paper Q.16 (i) (Page 154)

1. Q.14 (Page 91)

2. Q.15 (Page 92)
3. Past Paper Q.4 (Page 149)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-16 (Leases)

1. Q.12 (Page 80)

2. Operating Lease (Page 52)
3. Primary Indicators for testing lease as finance or operating (Page 52)
4. Read Tables on Page 69

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-16 (Leases)

1. Q.13, 14 (Page 80)

2. Past Paper Q.11 (Page 152)
3. Operating Lease (Lessor) (Page 59)

1. Q.20, 21 (Page 94)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.8 (lessee viewpoint ) (Page 49)

2. Page 45 (LO 2.6)
3. Started Page 46
4. Test-3 (Q.1, 4)
5. Examples as attached below

1. Test 3 (Q.1, 4)
2. Example-5 (Page 47)
3. Example-7 (Page 48)
4. Q.36 (Page 97)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

Example-1
1. Car
2. Fair value = 3,000,000
3. Lease Term = 3 years
4. Useful life = 10 years
5. Annual Rental= 400,000
Answer-1
Lessee: : ROU, LL
Lessor : Operating lease

Example-2
1. Printer
2. Fair value = Rs. 70,000
3. Lease Term = 3 years
4. Useful life = 4 years
5. Annual Rental= 23,000
Answer-2
Lessee: Choice of Simplified approach
Lessor : Finance lease

Example-3
1. Printer
2. Fair value = Rs. 70,000
3. Lease Term = 2 years
4. Useful life = 4 years
5. Annual Rental= 23,000
Answer-3
Lessee: Choice of Simplified approach
Lessor : Operating lease

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-16 (Leases)

1. Q.18 (Page 93)

2. Low Value Asset (Page 46)
3. Example-1, 2, 3, 4, 6, 9 (Page 46-51)
4. Page 68, 69

1. Example-10, 11 (Page 51)

2. Q.12 (Page 91)
3. Q.17 (Page 92)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-16 (Leases)

1. Disclosure(Para 52, 53, 54) (Page 44)

2. Q 31, 32, 33, 34 (Page 96, 97)

1. Same as Classwork

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Past Paper Q.12 (Page 152)

2. Past Paper Q.6 (Page 150)(Started)
3. Page 44, 45

1. Q.35 (Page 97)

2. Q.37 (Page 98)
3. Past Paper Q.6 (Page 150)(Completed)

1. Same as Class work

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Past Paper Q.8 (Page 151)

2. Past Paper Q.11 (page 152)
3. Discount rate after Page 213

1. Past Paper Q.7 (Page 150)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.9 (Page 189)

2. MCQ’s 17, 18 (Page 205)
3. Q.4 (Page 187)
4. Lease term (Page 40)

1. Past Paper Q.17 (Page 154)

1. Q.12 (Page 504)

1. Q.23 (Page 514)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.23 (page 84)

2. IDC Discussion

1. Q.26 (Page 515)

1. Q.23 (Page 514)

2. Q.21 (Page 513)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-16 (Leases)

1. Diagram as Attached below

2. Past Paper Q.10 (Page 151)
3. Concept of Missing Rentals (Page 2 After Page 213)
4. Concept of GRV and UGRV of lessor (Page before 214)
5. Q.28, 29 (Page 96)

1. Q.24 (Page 95)

2. Q.8 (Page 188)

1. Q.13 (Page 485)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Past Paper Q.9 (Page 151)

2. Past Paper Q.16 (Req. b) (Page 154)
3. Past Paper Q.15 (Adj. (i), (iii)) (Page 153)
4. Summary of Lease (Page 68-70)

1. Past Paper Q.18 (Page 155)

1. Various MCQs

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Page 35
2. Page 36 (Example-1, 2)
3. Page 37
4. Page 38 (Box at top)
5. Page 40 (Lessee's incremental borrowing rate, IDC, Example of IDC)
6. Lease is a Lease or not a lease
(i) Diagram on White board
(ii) Page 67
(iii) MCQ’s (25) (Page 207)
(iv) Past Paper Q.16 (ii) (Page 154)
(v) Past Paper Q.14 (Page 153)
(vi) Box on Page 63
(vii) Page 64 (Example-1, 2 in boxes)

1. Past Paper Q.11 (Page 152)

2. Past Paper Q.16 (Page154)
3. Past Paper Q.12 (Page 152) (Optional)

1. Past Paper Q.9 (Page 264)

2. Past Paper Q.19 (Page 269)

1. Past Paper Q.1 (Page 651)

2. Q.5 (Page 638)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Page 495, 496, 497

1. Must memorize these 3 pages (Page 495, 496, 497)

1. Page 64, 65, 63 (box)

2. Past Paper Q.20 (Page 156)

1. Past Paper Q.19 (Page 155)

How and for what purpose is predetermined by lessor and lessee has no right to operate and is not
designed on request of lessee

Example-1
Ali Foods enters a 5-year contract with ColdStore Ltd to use a specific cold storage unit. ColdStore
decides what items are stored, how long, and at what temperature. Ali Foods cannot change these settings
or access the storage area. The storage unit was not specially designed for Ali Foods.
Conclusion:
This is not a lease under IFRS 16 because Ali Foods has no control over how and for what purpose the
storage is used.

Example-2
Rehman Logistics contracts a shipping company to transport goods using a specific truck. The route,
driver, and timing are all decided by the shipping company. Rehman cannot operate the truck or change
its use. The truck was not modified for Rehman’s needs.
Conclusion:
Not a lease under IFRS 16 as Rehman doesn’t control how or for what purpose the truck is used.

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Page 40 (Definition of GRV)

2. Page 52 (Secondary Indicators)
3. Page 54 (Gross Investment, Net Investment, Interest rate Implicit in Lease)
4. Page 55 (Un-earned finance Income)
5. Example-1 (Page 55)
6. Page 58 (LO 4.6)
7. Page 59 (Disclosure for Lessor – Operating Lease)
8. Page 63 (Revise)
9. Past Paper Q.19 (Page 155)

1. Q.1 (Page 326)

2. Q.3 (Started) (Page 327)

1. Must memorize 3 pages (Page 495, 496, 497)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Page 329
2. Page 310 (Definition no. 1, 2, 4, 6, 7, 11)

1. Page 592 -594 (Threads to fundamental Principles)

2. Past Paper Q.4 (Page 606)
3. Past Paper Q.5 (Page 606)
4. Past Paper Q.1 (Page 605)

1. Must memorize 592 -594

2. Past Paper Q.1 (Page 605)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.3 (Page 327)

2. Concept of provision for doubtful debt

1. Past Paper Q.18 (Page 155) (Revision of GRV and UGRV concept)

1. Q.3 (Page 327) (DO THIS QUESTION TWICE)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.4 (Page 327)

2. Q.5 (Started) (Page 328)

1. Past Paper Q.1, 5 (As attached below)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-16 (Leases)

1. Q.5 (Completed) (Page 328)

2. Past Paper Q.2 (Page 408)

1. Q.5 (Page 328)

2. Past Paper Q.2 (Page 408)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Past Paper Q.2 (Completed) (Page 408)

2. Q.26 (Page 353)
3. Q.18, 19, 20 (Page 342)
4. Q.7 (Page 330)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.8 (Page 330)

2. Q.24 (Page 352)

1. Q.25 (Page 352)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Page 331 (Revision of accruals concept)

2. Q.9 (Page 334)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.14 (Page 337)

2. Q.10, 11, Example (Page 335)

1. Past Paper Q.6 (Adj. ii, iii) (Page 412)

1. Past Paper Q.5 (Page 411)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Past Paper Q.9 (Page 414)

1. Past Paper Q.4 (Page 410)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Past Paper Q.10 (Page 415)

1. Past Paper Q.10 (Page 415)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Past Paper Q.1 (Adj.( e) ) (Page 408)

2. Past Paper Q.6 (Adj. (vii))(Page 412)
3. Past Paper Q.14 (Adj. (iv))(Page 419)
4. Past Paper Q.6, 9 (Page 434, 440) (Reconciliation in percentage)
5. Q.21 (Page 350)

1. Past Paper Q.9 (Page 414)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.21 (Page 350)

1. Past Paper Q.11 (Page 266)

1. Q.15 (Page 510)

1. Past Paper Q.11 (Page 266)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.21 (Page 350)

2. Q.28 (Page 354)

1. Same as classwork

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.21(Prepared SOCI, SOCIE, SOFP) (Page 350)

2. Past Paper Q.12 (Page 417)

1. Q.32 (Page 355)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-16 (Leases)

1. Q.27 (Page 353)

2. Q.30 (Page 354)

1. Past Paper Q.15 (Page 420)

1. Q.27 (Page 353)

2. Q.30 (Page 354)
3. Past Paper Q.15 (Page 420)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-08 (Reportable segments)

1. Concept of Unrecognized Defer Asset

2. 5 Examples on Page 316
3. 6 Examples on Page 317

1. Q.2 (Page 567)

2. Q.3 (Page 568)

1. Past Paper Q.1 (Page 574)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-08 (Reportable Segment)

1. Past Paper Q.14 (Page 417)

1. Read Page 553

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-08 (Reportable Segment)

1. Q.1 (Page 579)

2. Page 554 (Para 9 only)
3. Page 557 (Para 23, 24)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-08 (Reportable Segment)

1. Page 554 (Para 10, 11, 12)

2. Page 555 (Para 13, 14, 17 )
3. Page 557 (Para 28)

1. Calculation of Deferred Tax expense for the year through short-cut approach for this we used the
solution of:
i. Past Paper Q.2 Solution (Page 427)
ii. Past Paper Q.6 Solution (Page 434)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-08 (Reportable Segment)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-08 (Reportable Segment)

1. Q. 18 (page 248)

1. Page 555 (Para 15, 19)

2. Page 556 (Para 18, 16)
3. Q.2 (Page 566)
4. Page 558 (Entity wide disclosures)
5. Past Paper Q.2 (Page 574)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-09 (Financial Instruments)

1. Page 556 (General Disclosures)

2. Page 558 (Measurement of items reported in Segmental Information)
3. Past Paper Q.2 (Page 574)

1. Q.1 (Page 684)

2. Page 674

1. Past Paper Q.18 (Page 423)

2. Past Paper Q.16 (Adj. (i), (ii), (iii)) (page 421)
3. Past Paper Q.17 (Page 422)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-09 (Financial Instruments)

1. Page 670, 671

2. Q.3 (Page 686)
3. Q.8 (Adj. (ii)) (Page 741)
4. Page 674

1. Q.2(page 684)
2. Q.4(page 687)
3. Q.5(page 689)
4. Q.7(page 691)
5. Q.8 (page 692)

1. Revision of IFRS-8 (Page 553 to 558)

2. Decision tree regarding disclosures at end of chapter

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-09 (Financial Instruments)

1. Q.11 (page 694)

2. Q.12 (page 694)
3. Q.13 (page 694)
4. Past Paper Q.4(a) (page 739)

1. Q.14 (page 695)

2. Q.15 (page 696)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-09 (Financial Instruments)

1. Q.16 (page 697) (Solution as attached below)

2. Past Paper Q.1 (Page 738)
3. Q.18 (Page 697)
4. Page 677

1. Past Paper Q.3 (Page 575)

1. Past Paper Q.20 (Page 425)

1. MCQs discussion IFRS-8

1. Q.19 (Page 699)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-09 (Financial Instruments)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-09 (Financial Instruments)

1. Past Paper Q.8(a) (Page 741)

2. Q.23 (Page 705)
3. Q.2 (Page 3)(hand written pages)
4. Pg. 675

1. Q.3(a), (c) (Page 583)

1. Q.20 (Page 700)

2. Q.27 (Page 709)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-09 (Financial Instruments)

1. Q.15 (Adj. ii) (Page 153)

1. Q.15 (Adj. vii) (Page 420)

2. Q.16 (Adj. v) (Page 421)
3. Q.13 (Adj. vii) (Page 418)

1. Past Paper Q.3 (Page 739)

2. Pg.672,673(Started)
3. Example as attached below:

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-09 (Financial Instruments)

1. Pg.672,673
2. Mcq no.14 (Page 758)
3. Concept of financial liability (FVTPL)
4. Q.25 (Page 706)
5. Q.25A (Page 707)
6. Pg.674,675,677(revision)
7. Pg.678(till box)
8. Pg.683
9. Past Paper Q.7(Adj. ii) (Page 741)

1. Q.34 (Page 356)

2. Q. 35 (Page 356)
3. Q.36 (Page 356)

1. Q.14 (Page 119)

1. Q.2 (Page 738)

2. Q.4(Adj. ii) (Page 739)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-09 (Financial Instruments)

1. Q.33 (Page 356)

Note:
Below is a list of homework questions. However, we are presenting these questions in the form of an
assignment starting from the next page of these notes. This way, it becomes a test for you, so you
can check which part of IFRS 9 each question is about.

1. Q.9 (Page 692)

2. Q.10 (Page 693)
3. Q.19 (Page 699)
4. Q.24 (Page 706)
5. Q.32 (Page 715)
6. Q.5 (Page 724)
7. Q.11, 12 (Page 726)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-09 (Financial Instruments)

Question-1(Q.9 (Page 692))

Dally limited purchased the following financial assets on 1 January 2011 using some of its excess cash
derived from a bumper year of exceptionally high profits.
a) 10,000 shares in Slow Limited an unlisted company. The price paid was Rs. 10 per share and
transaction costs were Rs. 1,000. These shares were purchased for long-term capital growth.
b) 15,000 shares in Speedy Limited a listed company. The price paid was Rs. 15 per share and transaction
costs came to Rs. 5,000. These shares were purchased for speculative purposes, (means short term
trading purposes)
Required:
Explain the categorization of each and calculate the initial amount that should be capitalized.

Question-2(Q.10 (Page 693))

Galaxy Co. purchased 10,000 shares of Star Ltd from open market on July 01, 2012 for Rs.30 per share.
10% was also paid as transaction cost. The market price on June 30, 2013 was Rs.35 per share.
Required:
Prepare journal entries and the extracts of Statement of comprehensive income for the year ended June
30, 2013 and the extracts of Statement of Financial Position of Galaxy Co. as on ended June 30, 2013.

Question-3(Q.19 (Page 699))

Haseena Limited has invested in a debt instrument on 01/01/Y1, details of which are as follows:
Face Value of the Instrument Rs. 100,000
Premium paid on the investment of the instrument Rs. 8,000
Transaction cost paid on the investment of the instrument Rs. 5,800
Coupon rate of the Instrument 12%
Term of the instrument 3 years
Haseena Limited has a policy to classify investment in debt instrument at Fair Value through P/L
IRR of the Instrument 8.848%
Market value of the Instrument at the end of year 1 Rs. 107,000
Required:
Prepare Journal entries for the year ended Y1.

Question-4 (Q.24 (Page 706))

Debentures of Rs. 100,000 are issued on January 1, 2008. This financial liability is held for trading and
therefore measured at FVTPL
Fair value of debentures at end of year is as follows:
31.12.2018
Fair value (Rs.) 25,000
Decrease in Fair value of Debentures attributable to deterioration of own credit rating 20,000
(Own credit risk)
Remaining decrease in fair value is attributable to other market forces
Required:
Prepare all the journal entries relating to debentures for year ended December 31, 2018

Crescent College of Accountancy | P a g e | 3

[CAF-05] IFRS-09 (Financial Instruments)

Question-5(Q.32 (Page 715))

Large Limited (a public listed company) has following financial instruments in the financial statements
for the year- ended December 31, 2017:
 An Investment in the debentures of Small Limited, nominal value Rs.600,000, purchased on their
issuance on January 01, 2017 at a discount of Rs. 90,000 and carrying 4% coupon rate and
redeemable at Rs. 585,703. Large Limited plans to hold these until their redemption on December
31, 2020 and collect contractual cash flows. The internal rate of return (IRR) of debenture is 8%
(means effective rate).
 10,000 redeemable preference shares issued on 01 January 2017 at Rs.10 per share (their nominal
value) with an annual dividend payment of 6% redeemable in 2020 at their nominal value.
Required:
Being a chief Financial (CFO) of the Large Limited, advice the directors about the accounting for the
financial instruments, as required by the relevant International Financial Reporting standards (IFRS) on
financial instruments.

Question-6(Q.5 (Page 724))

On 1 January 2001, Tokyo bought Rs. 100,000 5% bonds for Rs. 95,000, incurring issue costs of Rs.
2,000. Interest is received in arrears. The bond will be redeemed at a premium of Rs. 5,960 over nominal
value on 31 December 2003. The effective rate of interest is 8%.
The fair value of the bond was as follows:
Rupees
31/12/01 110,000
31/12/02 104,000

Required:
Show extracts from financial statements how the bond will be accounted for over all relevant years if:
(a) Tokyo planned to hold the bond until the redemption date.
(b) Tokyo may sell the bond if the possibility of an investment with a higher return arises.

Crescent College of Accountancy | P a g e | 4

[CAF-05] IFRS-09 (Financial Instruments)

Question-7( Q.11 (Page 726))

1. A company issues 5% loan notes at their nominal value of Rs. 20,000 with an effective rate of 5%.
The loan notes are repayable at par after 4 years.
Required:
What amount will be recorded as a financial liability when the loan notes are issued?
What amounts will be shown in the statement of profit or loss and statement of financial
position for years 1-4?

2. A company issues 0% loan notes at their nominal value of Rs. 40,000. The loan notes are repayable
at a premium of Rs. 11,800 after 3 years. The effective rate of interest is 9%.
Required:
What amount will be recorded as a financial liability when the loan notes are issued?
What amounts will be shown in the statement of profit or loss and statement of financial
position for years 1-3?

3. A company issues 4% loan notes with a nominal value of Rs. 20,000. The loan notes are issued at a
discount of 2.5% and Rs. 534 of issue costs are incurred.
The loan notes will be repayable at a premium of 10% after 5 years. The effective rate of interest is
7%.
Required:
What amount will be recorded as a financial liability when the loan notes are issued?
What amounts will be shown in the statement of profit or loss and statement of financial
position for year 1?

Question-8(Q.12 (Page 726))

On 1 April 2007, a company issued 40,000 Rs. 1 redeemable preference shares with a coupon rate of
8% at par. They are redeemable at a large premium which gives them an effective finance cost of 12%
per annum.
Required:
How would these redeemable preference shares appear in the financial statements for the years ending 31
March 2008 and 2009?

Crescent College of Accountancy | P a g e | 5

[CAF-05] IAS-10, 37

1. Q.32 (Page 715)

2. Past Paper Q.6 (Page 740)
3. MCQ’s no. 20, 21 (Page 759)

1. Q.1 (below)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-10, 37

1. Past Paper Q.5(Adj. ii) (Page 740)

2. LO. 4.3 (Page 681, 682)

1. Past Paper Q.9 (Adj. vii)(first bullet) (Page 414)

1. Q.3 (Page 358)

2. Past Paper Q.16 (Page 391)

1. Past Paper Q.16 (Adj. iv)(Page 421)

1. Q.1 (Page 418)

2. Q.6 (Page 373)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-10, 37

1. Q.2 (Page 357)

1. Q.3 (Page 418)

1. Q.40 (Page 723)

1. Past Paper Q.9 (Page 607)

2. Page 601

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-10, 37

1. Q.19 (Page 424)

1. Past Paper Q.17 (Page 392)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IAS-10, 37

1. Q.39 (Page 722)

1. Past Paper Q.6 (Page 607)

1. Q.4 (Page 359)

2. Page 355, 356

1. Q.2 (Page 418)

2. Past Paper Q.21 (Page 394)
3. Q.7 (page 373)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-10, 37

1. Past Paper Q.2 (Page 605)

1. Past Paper Q.22 (Page 394)

2. Q.4 (Page 419)

1. Various MCQs

1. Various MCQs

Crescent College of Accountancy | P a g e | 2

[CAF-05] IAS-10, 37

1. Past Paper Q.11 (Page 690)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-10, 37

Question-11
The following balances have been extracted from the trial balance of Mint Lemonade Limited (MLL) as
at 31 December 2019:
Rs. in million
Trade receivables 1,200
Capital work in progress 910
Allowance for bad debts as on 1 January 2019 44
Sales 2,500
Cost of goods sold 1,320
Research and development 180
Dividend receivable 10
Administrative expenses 302
Selling and distribution expenses 200
Finance cost 48
Dividend income 30
Capital gain 50
Other income 36
While finalizing the financial statements of MLL, the following issues have been noted:
(i) Trade receivables include a balance of Rs. 40 million which needs to be written off. MLL maintains
a provision for doubtful debts at 5% of trade receivables.
As per tax laws, only write offs are allowed as deduction.
(ii) Capital work in progress includes interest cost of Rs. 84 million on specifically acquired bank loan
during the year. However, interest of Rs. 16 million earned by investing surplus funds available from
the bank loan has been included in other income.
As per tax laws, borrowing costs are allowed when incurred.
(iii) Research and development represents cost incurred for a new product started on 1 February 2019.
The recognition criteria for capitalization of internally generated intangible asset was met on 1 May
2019. The product was launched on 31 October 2019. It is estimated that the useful life of this new
product will be 5 years. It may be assumed that all costs accrued evenly over the period.
Research and development cost is allowed as tax deduction over 10 years.
(iv) Tax depreciation for the year ended 31 December 2019 exceeded accounting depreciation already
recorded in books, by Rs. 200 million.
(v) Office building of ML had net book value of Rs. 900 million on 31 December 2018 with remaining
useful life of 12 years. During 2019 MLL decided to opt revaluation model for its building.
Consequently, fair value of building at start of 2019 was determined at Rs. 1,200 million. Such
revaluation has not yet been accounted for. Depreciation on office building under cost model has
already been recorded in the books.
Revaluation does not affect taxable profit.
(vi) Capital gain is exempt from tax. Dividend was taxable on receipt basis at 15% in 2019. However,
with effect from 1 January 2020, dividend received would be taxable at 20%.
(vii) Applicable tax rate is 32% except stated otherwise.
Required:
a) Prepare MLL’s statement of profit or loss and other comprehensive income for the year ended 31
December 2019. (08)

Crescent College of Accountancy | P a g e | 2

[CAF-05] IAS-10, 37

b) Prepare note on taxation for inclusion in MLL’s financial statements for the year ended 31
December 2019 including a reconciliation to explain the relationship between tax expense and
accounting profit. (12)
{March 2020, Q.7}

Crescent College of Accountancy | P a g e | 3

[CAF-05] IAS-10, 37

Answer-11
a)
Mint Lemonade Limited
Statement of Comprehensive Income
For the year ended 31 December 2019
Rs. in million
Revenue 2,500
Less: Cost of sales (1,320)
Gross profit 1,180
Add: Other income (30 + 50 + 36 – 16 (adj. ii)) 100
Less: Admin expenses (302 + 25(W-6) + 60(W-8) + 4 (W-8)) (391)
Selling & Distribution costs (200 + 54(W-4)) (254)
Finance charge (48)
Profit before taxation 587
Less: Taxation [Requirement b] (167.24)
Profit after taxation 419.76
Add: Other comprehensive
income
Revaluation Surplus (W-7) 204
Total comprehensive income 623.76
b)
Mint Lemonade Limited
Notes to the Financial Statements
For the year ended 31 December 2019
Rs. in million
1 – Taxation
2019
Tax:
Current tax (W-1) 106.68
Deferred tax (W-2) 60.56
167.24
1.1 - Reconciliation between accounting Profit before tax with tax expense
Rs. in
million
Profit before tax 587
Tax Rate 32%
Tax on above (587 x 32%) 187.84
Less: Tax effect of Dividend income [20 × 17% (32 - 15) + 10 × 12% (32 - 20)] (4.6)
Less: Tax effect of exempt income (50 x 32%) (16)
167.24

Crescent College of Accountancy | P a g e | 4

[CAF-05] IAS-10, 37

(W-1) Calculation of Current Tax

Rs. in
million
Profit before tax [Req. (a)] 587
Add:
Bad Debt expense (W-4) 54
Interest income in surplus funds 16
R and D cost expensed out as per IAS-38 (W-8) 60
Accounting amortization of Intangible (W-8) 4
Office building dep. (W-6) 25
159
Less:
Bad debt written off (W-4) 40
Borrowing cost allowable as per tax rules 84
Tax amortization of Intangible (180/10) 18
Tax depreciation over excess of Acc. Depreciation 200
Capital gain-Exempt 50
Dividend income 30
(422)
Taxable profit for current year 324
Current tax @ 32% (324 x 32%) 103.68
Add: Tax under separate rate
Dividend Income (20 (W-5) x 15%) 3
Total Current tax 106.68
(W-2) Calculation of deferred tax expense for the year
Adjusted Accounting Taxable Diff. Tax
Profit profit
Others 587 - 50 - 30 = (183 x 32%)
183T.T.D
507 > 324 58.56

Dividend 10 > 0 10 T.T.D 2 (10 x 20%)

60.56 (Recording of DTE)

(W-3)
Dr. Debtor a/c Cr.
Unadjusted cl. 1,200 Bad debt written off 40
adjusted cl. 1,160

(W-4)
Dr. Provision for doubtful debt Cr.
Bad debt written off 40 b/d 44
c/d [1,160 (W-3) x 5%] 58 Bad debt expense (bal.) 54

(W-5)
Dr. Dividend income Cr.
P/L 30 Cash (bal.) 20
c/d 10
Crescent College of Accountancy | P a g e | 5
[CAF-05] IAS-10, 37

(W-6) Entries for adj. (v)

Rectifying Original Wrong
Office Build. 300 Office Build. 300
D.T.L 96 D.T.L 96
Rev. Surplus- 204 Rev. Surplus- 204
OCI OCI
Dep. 25 Dep. 100 Dep. (900/12) 75
Acc. Dep. 25 Acc. Dep. 100 Acc. Dep. 75
Rev. Surplus 17 Rev. Surplus 17
Ret. Earning 17 Ret. Earning 17

(W-7) Calculation of revaluation surplus and depreciation on Asset

Office Rev. SOCI Tax on Net
building Surplus (P/L) Surplus Surplus
Date Description (32%) (68%)

-----------Rs. in million-----------
01/01/19 Opening WDV 900
01/01/19 Rev. surplus (bal.) 300 300 - 96 204
01/01/19 Revalued amount 1,200 300 - 96 204
31/12/19 Depreciation over 12 (100) (17)
years (25) (8)
31/12/19 WDV 1,100 275 - 88 187

(W-8) Adj. no (iii)

Particulars Dr. Cr.
Original
Expense (180/9 x 3) 60
Intangible (180/9 x 6) 120
Cash 180
Amortization 4
Accumulated amortization (120/5 x 2/12) 4

Wrong
Research and development expense 180
Cash 180

Crescent College of Accountancy | P a g e | 6

[CAF-05] Consolidation

1. Page 1
2. Q.1, 2 (Page 87)
3. Q.3, 4 (Page 88)
4. Q.5 (Page 89)

1. Q.13 (Page 418)

Note for Online Students:

You can take print of following pages for first three classes of Consolidation:
Page 1, 6, 7, 32, 33, 34, 35, 36, 37, 87, 88, 89, 90

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Q.5, 6, (Page 89)

2. Q.7, 8 (Page 90)
3. Q.1 (Started) (Page 32)

1. Q.9 (Page 91)

1. Q.11 (Page 416)

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Q.1, 2 (page 32)

2. Illustration-1 (page 6)
3. Illustration-2 (page 7)
4. Q.4 (page 34)

1. Q.3 (Page 33)

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Q.4 (page 34)

2. Q.6 (Page 37)

1. Q.5 (Page 35)

2. Q.7 (page 38)

1. Past Paper Q.13 (Page 418)

1. Past Paper Q.9 (Page 741)

1. Past Paper Q.3 (Page 606)

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Q.8 (page 41)

2. Q.10 (Started) (Page 45)

1. Q.9 (Page 42)

1. Discussion of IFRS-09 along with IAS-12 as on next pages.

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Q.10 (Page 45)

2. Q.17 (Page 62)

1. Q.11 (Page 46)

1. Question-1, 2 as below

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

Question-1 (Solve this Question in Rs. In millions)

Gamma Limited (GL) has undertaken several investment transactions during the year ended 31 December
2024:
1. On 1 January 2024, the company purchased 150,000 bonds (Bond A) with a face value of
Rs.1,000 each at a premium of Rs.50 per bond. In addition, transaction costs of Rs.20 per bond
were incurred. The bonds have a maturity period of five years and carry a coupon interest rate of
13% per annum, payable annually on 31 December. The effective interest rate on the investment
is approximately 11.1% per annum. The investment is classified as measured at fair value through
other comprehensive income (FVOCI). As of 31 December 2024, these bonds were quoted at
Rs.1,030 per bond on the stock exchange.
2. On 1 August 2024, GL purchased an 8% debt instrument (Bond B) with a face value of
Rs.100,000,000 at a 5% premium. A transaction cost of Rs.3,600,000, directly attributable to the
acquisition, was also incurred. Interest is receivable annually at 31 July. The effective interest rate
on this investment is 4.065% per annum. The fair value of the instrument as of 31 December
2024 is Rs.114,000,000. This investment is measured at amortized cost, as it is held to collect
contractual cash flows.
3. On 1 January 2024, GL also purchased 10% bonds (Bond C) with a face value of Rs.200,000,000
for Rs.240,000,000, along with direct transaction costs of Rs.2,000,000. These bonds will be
redeemable at a discount of Rs.10,000,000 on 31 December 2028, and actual interest is receivable
annually at year-end. The effective interest rate is 2.792% per annum. The fair value of the bonds
on 31 December 2024 is Rs.275,000,000. This investment is classified as held for trading.

Required:
Prepare journal entries in the books of Gamma Limited for the year ended 31 December 2024.

Question-2 (Solve this Question in Rs. In millions)

Continuing from Question 1, Gamma Limited (GL) has a profit before tax of Rs.2.2 million, the
applicable tax rate is 30%. Under prevailing tax laws, transaction costs are an allowable expense in the
year they are paid, while interest income is taxed on a receipt basis.

Requirement:
Prepare a note on taxation for inclusion in GL's financial statements for the year ended 31 December
2024, along with a reconciliation explaining the difference between tax expense and accounting profit.

Crescent College of Accountancy | P a g e | 2

[CAF-05] Consolidation

Answer-1
Gamma Limited
Journal Entries
For year ended Dec 31, 2024

FVTOCI Rs. In million

Date Particular Dr. Cr.

01/01/24 Investment in debt instruments 160.5

Bank 160.5
31/12/24 Investment in debt instruments 17.8
Interest income 17.8
31/12/24 Cash 19.5
Investment in debt instruments 19.5
31/12/24 Fair Value Reserve(OCI) 4.3
Investment in debt instrument 4.3

Amortized Cost
Date Particular Dr. Cr.
01/08/24 Investment in debt instruments 108.6
Bank 108.6
31/12/24 Investment in debt instruments (4.4 × 5/12) 1.8
Interest income 1.8

FVTPL
Date Particulars Dr. Cr.
01/01/24 Investment in debt instrument 240
Bank 240
01/01/24 Transaction cost – P/L 2
Bank 2
31/12/24 Cash 20
Interest income (200 mill x 10%) 20
31/12/24 Investment in debt instrument 35
Fair value gain - P/L (W-1) 35

Crescent College of Accountancy | P a g e | 3

[CAF-05] Consolidation

Working:
(W-1) Amortization schedule:
Date Effective Cash flows Balance Fair value Fair Change
Interest coupon value in fair
Income @ Receive @ reserve value
11.1% 13% of reserve
150*
million
01/01/24 160.5
31/12/24 17.8 (19.5) 158.8 154.5*** 4.3 loss 4.3 loss

Purchase price plus transaction cost = **157.5 + 3 = 160.5 million

*Face Value = 150,000 × Rs.1,000

= 150 million
**Purchase Price = 150,000 × Rs.1,050
= 157.5 million
Transaction cost = 150,000 × Rs.20 = Rs 3 million
***Fair Value at 31 Dec, 2024 = 150,000 × Rs.1,030
= 154.5 million

(W-2) Amortization schedule:

Date Effective Cash flows coupon Balance
Interest income received @ 8% on
@ 4.065% 100 million
01/08/24 108.6 (105 + 3.6)
31/07/25 4.4 (8)
*Face Value = 100 million
** Purchase price = 100 + 5% of 100 = 105 mill

(W-3)
Dr. Investment in debt instrument Cr.
Bank 240
Fair value gain - P/L (bal.) 35 c/d 275

Crescent College of Accountancy | P a g e | 4

[CAF-05] Consolidation

Answer-2

1 - Taxation
Rs. In mill.
Tax
Current tax (W-4) -
Deferred tax (W-6) 0.6
0.6
1.1 - Reconciliation between accounting Profit before tax with tax expense
Profit before tax 2.2
Tax rate 30%
Tax Expense 0.6
(W-4) Calculation of current tax
` Rs. In million
Profit before tax 2.2

Less: Interest income Bond-A (17.8)

Add: Interest received Bond-A 19.5
Less: Transaction cost Bond-A (3)

Less: Interest income Bond-B (1.8)

Add: Interest received Bond-B 0
Less: Transaction cost Bond-B (3.6)

Less: Fair value gain Bond-C (35)

Taxable loss (39.5)
Tax -
(W-5) Calculation of deferred tax
Carrying Difference Tax
amount Tax Base T.T.D/D.T.D D.T.L/D.T.A
Investment A 154.5 157.5 3 DTD (0.9)
Investment B 110.4* 105 5.4 TTD 1.6
Investment C 275 240 35 TTD 10.5
Unused loss (39.5 x 30%) (11.9)
Deferred tax liability (0.7)
108.6 + 4.4 x 5/12 = 110.4 *
(W-6)
Dr. Deferred tax liability/asset Cr.
Investment (W-3.1) 1.3 b/d 0
D.T.E (bal) 0.6
c/d (W-2) 0.7

Crescent College of Accountancy | P a g e | 5

[CAF-05] Consolidation

(W-6.1)
Date Particular Dr. Cr.
31/12/24 Fair Value Reserve (OCI) (4.3 x 70%) 3
Deferred tax asset (4.3 x 30%) 1.3
Investment in debt instrument 4.3

Crescent College of Accountancy | P a g e | 6

[CAF-05] Consolidation

Crescent College of Accountancy | P a g e | 2

[CAF-05] Consolidation

Crescent College of Accountancy | P a g e | 3

[CAF-05] Consolidation

1. Q.12 (Page 49)

2. Q.15 (Page 60)

1. Q.13 (Page 55)

2. Q.14 (Page 58)

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Page 27
2. Q.18-20 (Page 64)
3. Q.21, 23 (Page 65)
4. Q.26 (Page 66)

1. Q.16 (Page 61)

1. Past Paper Q.5 (Page 779)

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Q.28 (Page 68)

2. Q.16(Adj. iv) (Page 61)

1. Past Paper Q.2 (Page 150)

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Q.30 (Page 71)

1. Q.31 (Page 72)

1. Past Paper Q.8 (Page 263)

2. Past Paper Q.14 (Page 267)
3. Past Paper Q.22 (Page 272)

1. Page 679, 680

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Q.32 (Page 75)

2. Page 25 (point 3 at start of page)

1. Q.33 (Page 76)

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Q.34 (Page 80)

2. Q.36 (Page 84)
3. Past Paper Q.4 (Adj. iv) (Page 152)
4. Page 25 (point 4 at start of page)

1. Q.35 (Page 81)

Crescent College of Accountancy | P a g e | 1

[CAF-05] Consolidation

1. Past paper Q.7(Page 155)

2. Q.25 (Page 103)

1. Q.29(Page 69)
2. Q.25 (Page 103)

Crescent College of Accountancy | P a g e | 1

[CAF-05] ASSOCIATES

1. Q.1 (Page 218)

2. Q.2 (Page 219)
3. Page 213 LO 1 (Definitions)

1. Q.3 (Page 220)

1. Point 5,6 and 7 (Page 25)

2. Point 9 and 10 (Page 26)
3. Point 2 (Page 24)
4. MCQ 47 and 12

Crescent College of Accountancy | P a g e | 1

[CAF-05] ASSOCIATES

1. Q.4 and 5 (Page 224)

2. Handwritten page 4

1. Q.6 (Page 225)

1. Past paper Q.5 (Adjustment (v) Page 153)

2. Past paper Q.8 (Adjustment (v) Page 156)

Crescent College of Accountancy | P a g e | 1

[CAF-05] ASSOCIATES

1. Q.8 (Page 229)

2. New version of Working 7
3. Q 10 (Page 233)

1. Past paper Q 4 (Page 255)

2. Past paper Q 2 (Page 252)
3. Past paper Q 5 (Page 256)
4. Past paper Q 10 (Page 263)

1. Past paper Q 4 (Page 255)

2. Past paper Q 2 (Page 252)
3. Past paper Q 5 (Page 256)
4. Past paper Q 10 (Page 263)

Crescent College of Accountancy | P a g e | 1

 [CAF-05] ASSOCIATES

1. Past Paper Q 1 (Page 250)

2. Past Paper Q 3 (Page 254)
3. Revised solution of Past Paper Q 10 is also attached on next 2 pages of this pdf.

1. Completed Past Paper Q 3 (Page 254)

Note: Tomorrow in Lecture 87 we will do Past Paper Q 7 (Page 260) so you may also read this question
except adjustment (iii) which concept is yet not taught by me.

Crescent College of Accountancy | P a g e | 1

Revised Solution – Past Paper Q.10 of IAS-28

Answer-10

Winsome Limited
Consolidated Statement of Financial Position
As on December 31, 2023
Assets Rs. ‘million’
Property plant and equipment (1,900 + 900 + 64 – 6 (W-2) -18 (W-8)) 2,840
Goodwill (320 (W-1) – 32) 288
Investment in Associate (W-7) 301
Other investment (W-1.1) 610
Other assets (690 + 700 - 35) 1,355
5,394
Equity and liabilities
Share capital 2,500
Consolidated retained earnings (W-3) 993
Non-controlling interest (W-4) 416
Liabilities (1,270 +220 + 30 (W-3) - 35) 1,485
5,394

(W-1)
Dr. Cost of Investment (For calculating Goodwill) Cr.
Investment (W-1.2) 1,148 Share capital 750
NCI (bal.) 368 Share premium 120
Retained earnings (bal.) 262
1,132
Revaluation surplus - Equipment 64
Net assets - at fair value 1,196
Goodwill 320
(W-1.1) Investment
As per Question 2,000
Less: Investment in subsidiary(W-1.2) (1,148)
Less: Investment in Associate (290)
Other Investment 562
Add: Fair value gain 48
610
(W-1.2) Investment in susidiary
Cash 288
Deferred consideration (288 x 1.2-2) 200
Land at fair value 660
1,148

(W-2)
Dr. Subsidiary retained earnings a/c Cr.
Pre-Acquisition R.E. (W-1) 262 b/d (Balance sheet closing) 510
Equipment Depreciation (64/8 x 9/12) 6
Machine-URP (W-8) 18
Goodwill (Imp.) (320 x 10%) 32

CRE (192 x 75%) 144

NCI (192 x 25%) 48

Page 1
Revised Solution – Past Paper Q.10 of IAS-28

(W-3)
Dr. Consolidated retained earnings a/c Cr.
Unwinding of interest on deferred 30 Parent own R.E 820
consideration (200 x 20%) x 9/12
Subsidiary retained earnings a/c (W-2) 144
Associate retained earnings (W-7) (39 – 18) 21
Impairment on CL 22 Associate surplus (W-7) 12
Fair value on investments 48
c/d (Bal.) 993
(W-4)
Dr. Non-controlling interest a/c Cr.
Cost of Investment a/c (W-1) 368
c/d (bal.) 416 Subsidiary retained earnings a/c 48

(W-5) Not required

(W-6) Not required

(W-7) (15 / 50 x 100 = 30% Equity Purchased)

Dr. Investment in Associates a/c Cr.
Investment at Cost 290 Dividend (Rs. 500 mill x 12% = 60 x 30%) 18
Post-acquisition profit 39 Impairment 22
(80 x 6/12 + 90) = 130 x 30%
Post-acquisition OCI (40 x 30%) 12
c/d (bal.) 301

(W-8) Fixed asset sold by S to P

Gain net of depreciation

Gain 20
Less: Accumulated Dep. (20/5 x 6/12 ) (2)
18

Page 2
 [CAF-05] IAS-10,37

PP

1. Concept of Investment property in Consolidation

2. Past Paper Q 7 adjustment (iii)

1. Page 323
2. Page 324 (Para 10, 14)
3. Example 1 (Page 324)
4. Example 2 (Page 325)
5. Page 328 (Para 48 and Example-3)
6. Page 329

1. Past Paper Q 7 (Page 260)

Note: Tomorrow in Lecture 88 we will do Past Paper Q 8 (Page 261) so you may also read this question.

Crescent College of Accountancy | P a g e | 1

 [CAF-05] IAS-10,37

PP

1. Concept of Significant Influence in separate Financial Statements of parent

2. See the diagram attached below
3. Two examples were solved in class

1. Page 330
2. Page 331 (Example, 5 and 6)
3. Page 348 (Example 1)

1. Past Paper Q 8 (Page 261)

Note: Tomorrow in Lecture 89 we will do Past Paper Q 9 (Page 262) so you may also read this question

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-10,37

Crescent College of Accountancy | P a g e | 2

[CAF-05] IAS-10,37

1. Page 332 complete

2. Page 348 (Example 2A, 2B and 3)
3. Page 326 (Para 22)
4. Page 349 (Example 6)
5. Page 350 (Example 7)
6. Page 351 (Example 11A and 11B)

1. Q 12 (Page 239) (Only adjustment of revaluation surplus)

1. Past Paper Q 9 (Page 262)

1. Past Paper Q 5 (i) (Page 740)

2. Past Paper Q 7 (i) (Page 741)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-10,37

1. Page 335 Restructuring (Para 70, 72, 80, 81, 82, 83)
2. Page 336 (Example 11)
3. Page 336 Onerous Contract (Para 68)
4. Page 337 (Example 12, 13 and 14)
5. Page 338 (Future operating losses)
6. Page 339 (Example 15, 16 and 17)

1. P. P.Q 9 (Page 262) (Adjustment vi, and vii)

1. Q.11 (Page 234)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS-10,37

1. Past Paper Q 2 (Adjustment (i), (ii) and (iii) Page 383)

2. Past Paper Q 18 (Page 392)
3. Page 362 (Example 1)
4. Page 365 (Q 1 Point 1, 2, 4, 5)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS 10,37

1. Page 365 Q 1 (Point 6, 10, 12, 11, 13, 3, 14, 15 and 16)
2. Page 361
3. Page 362
4. Page 363 (Date of authorization of issue and examples of non-adjusting events)
5. Page 386 Past Paper Q 6
6. Page 384 Past Paper Q 3 (iii)

1. Page 385 Past Paper Q 5 (Adjustment a)

2. Page 387 Past Paper Q 8 (Adjustment c)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IAS 10,37

Crescent College of Accountancy | P a g e | 2

[CAF-05] FINAL ACCOUNTS

1. Page 363
2. Page 364
3. Past Paper Q 3 (Adjustment (ii) Page 384)
4. Past Paper Q 4 (Adjustment (iii) Page 385)
5. Page 352
6. Page 353
7. Page 354

1. Page 630 Q 1
2. Handwritten page 9

1. Past Paper Q 4 (Adjustment (ii and iv) Page 385)

2. Past Paper Q 7 (Page 387)
3. Past Paper Q 12 (Adjustment (ii and i) Page 389)
4. Past Paper Q 23 (Adjustment (i and ii) Page 395)
5. Past Paper Q 25 (Adjustment (ii and iii) Page 397)

Crescent College of Accountancy | P a g e | 1

[CAF-05] FINAL ACCOUNTS

1. Gone through Page 608 and 609

2. Past Paper Q 1 (Page 675)

Crescent College of Accountancy | P a g e | 1

[CAF-05] FINAL ACCOUNTS

1. Past Paper Q 3 (Adjustment (i) Page 384)

1. Page 676 Past Paper Q 1 (Adjustment iii)

2. Page 682 and 683 Past Paper Q 6(Gone through the trail and discussed adjustment vi, vii and viii)
3. Page 596, 597
4. Page 693 Past Paper Q 17 (Part a)

Crescent College of Accountancy | P a g e | 1

[CAF-05] FINAL ACCOUNTS

1. Past Paper Q 18 (Page 694)

1. Past Paper Q 6 (Page 258)

2. Past Paper Q 11 (Page 264)

1. Past Paper Q 2 (Adjustment iv Page 383)

1. Past Paper Q 25 (Adjustment iv Page 397)

Crescent College of Accountancy | P a g e | 1

[CAF-05] FINAL ACCOUNTS

1. Past Paper Q 12 (Page 691)

2. Page 598 (Point 5)
3. Past Paper Q 2 (Page 677)

Crescent College of Accountancy | P a g e | 1

[CAF-05] FINAL ACCOUNTS

Crescent College of Accountancy | P a g e | 2

[CAF-05] FINAL ACCOUNTS

1. Past Paper Q 2 (Page 677)

2. Page 584, 585, 587 (iii, iv), 589 and 590 (Example 17)

1. Page 338 (Example 14A)

2. Page 420 Q 6

1. Past Paper Q 25 (iv) (Page 397)

1. Past Paper Q 14 (Page 692)

Crescent College of Accountancy | P a g e | 1

[CAF-05] FINAL ACCOUNTS

1. Page 420 Q 6
2. Page 346 and 347

1. Page 587 (Point v), (Page 622 Point 27)

2. Page 588
3. Page 589 (Point 1)
4. Page 592 (Point 5 and Example 21)
5. Page 593 (First 8 lines)
6. Page 695 Q 19

1. Page 419 (Q 5)
2. MCQs Discussion

1. Past Paper Q 15 (Page 693)

2. Past Paper Q 17 (b) (Page 693)

Note: Separate video for IAS 10, 37 MCQs is also uploaded

Crescent College of Accountancy | P a g e | 1

[CAF-05] FINAL ACCOUNTS

1. Page 594 (Point 8)

2. Page 595 (Example 28)
3. Page 685 Q 8
4. Page 590 (Point 3)
5. Page 633 Q 4
6. Page 691 Q 12
7. Page 693 Q 16

1. Page 396 Q 24

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Page 591 (Point 4)

2. Page 592
3. Page 593 (Point 6 and 7)
4. Page 594 (Security Deposit)
5. Page 635

1. Page 499 Q 1
2. Page 500 Q 2 and 3

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Past Paper Q 4 (b) (Page 529)

2. Past Paper Q 11 (iv) (Page 532)
3. Page 501 Q 4
4. Page 502 Q 5
5. Page 503 Q 6
6. Past Paper Q 11 (i) (Page 532)

1. Page 504 Q 7
2. Example 1 (Page 460)
3. Example 2 (Page 461)
4. Past Paper Q.1 (Page 382)

1. Screenshot as attached below

2. Page 624 (Point 1a and b)
3. Page 625 (Note 1, 2 and 3)
4. MCQ (4, 8, 9 and 10)

1. MCQ (44 and 46, 41, 40 and 39)

2. Page 768 Past Paper Q 1

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-15

1. Page 432 LO 1, 1.1, and 1.2

2. Page 434 LO 2, 2.1, and 2.2
3. Page 435
4. Page 507 Q 10
5. Past Paper Q 5 (b) (Page 529)
6. Q 12 (Page 510)

1. Page 610 (Note 1, 2 and 2.1)

2. Page 611
3. Page 612 (Till note number 2.3.11)

1. Revise 3rd schedule of companies acts 2017 (Diagram was attached in previous lecture)
2. Q 11 (Page 509)

1. Past Paper Q 1 (i) Page 382

1. Past Paper Q 20 (Page 393)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Past Paper Q 26 (i) Page 398

1. Past Paper Q 3 (b) Page 528

2. Past Paper Q 9 (a) Page 531
3. Page 468 Example 7, 8, 9 and 10
4. Page 466 LO 5.3 (a, b and c)
5. Page 467 Example 6
6. Page 469 Example 11
7. Past Paper Q 10 Page 532
8. Page 449 Example 1
9. Page 450 Example 2, 3, 4 and 6

1. Page 466 (Example 3 and 4)

2. Page 467 (Example 5)

1. Past Paper Q 20

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Page 488 Q 1
2. Page 458 Example 5 and 6
3. Page 456 Example 2
4. Page 457 Example 4
5. Page 458 Example 7
6. Page 455 LO 4.2
7. Page 462 LO 4.2.4 (Para 66 and Example 1)
8. Page 536 Past Paper Q 16 (i)
9. Page 462 LO 4.2.4 (Para 69 and Example 2)
10. Page 448 LO 3.2 (Para 27 First Bullet and Para 28)

1. Past Paper Q 1 (ii) Page 382

1. Page 457 (Example 3)

1. Past Paper Q 10 (Page 688)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Past Paper Q 17 (i) Page 537

2. Page 439 Question 1
3. Page 440 Question 2
4. Page 441 Question 3
5. Page 442 Question 4
6. Page 438 LO 2.5
7. Page 448 (Para 27, 28 and 29)

1. Past Paper Q 17 (ii) Page 537

1. Past Paper Q 5 (c) Page 386

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Page 516 Question 19

2. Page 463 LO 4.2.5
3. Page 463 Example 1 and Example 2
4. Page 464 Example 4
5. Page 536 Question 16 (ii)
6. Page 531 Question 9 (b)
7. Page 478 Question 1

1. Past Paper Q 13 Page 692

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

Sr.
Particulars Part A Part B & C Homework
No
Discount [Link] 494 Example 04
1 [Link] No 535 Past paper14 (iii) [Link] 518 Question 22
Voucher
[Link] 532 Past Paper 11 (iii)
Presentation and Retrospective adjustment in Revenue:
Contract
Asset [Link] 484, Example 01 [Link] 531 Past paper 8(iii)
2
Receivable [Link] 485, Example 02 [Link] 532 Past paper 11(ii) [Link] 514 Question 16

Contract [Link] 530 Past Paper 07 [Link] 535 Past paper 14(ii)
Liability
[Link] 535 Past paper 14 (i)
[Link] 506 Question 09
3 Discounting
[Link] 505 Question 08
[Link] 529 Past paper 06 (b)

Contract
4 [Link] 534 Past paper 13 (i)
Modification

Percentage of
5 [Link] 531 Past paper 8 (ii) [Link] 479 Question 02
Completion

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

Sr
Particulars Description
No
1 Discounting 1. A screenshot attached on 3rd page of these notes
2. Page 528 Past Paper Q 3 (a)
3. Homework: Q 23 Page 519
2 Presentation (Contract asset, 1. A screenshot for cancellable and non-cancellable contract
Contract Liability and (On next Page)
Receivable) 2. Revision of Page 484 and 485
3. Page 486 LO 8.3 (only definition)
4. Also Refer Diagram at the end of chapter regarding
presentation
3 Costs to obtain contract 1. A screenshot for cost to obtain contract (On next Page)
2. Page 480
3. Page 515 Q 18
4. Page 481 Example 3, Example 4 and Example 5

1. Q 38 Page 85

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-15

Crescent College of Accountancy | P a g e | 3

[CAF-05] IFRS-15

Sr.
Particulars Description
No
Part A Part-B
1 Bill and Hold 1. Page 493 Example 3
2. Page 492 LO 10.4 (Last
Para)
2 Costs to obtain contract 1. Page 482 Example 6
2. Page 480 (Revision)
3. Past Paper Q 8 (i) Page 531
3 PO is satisfied over time 1. Page 473 LO 6.3 (Para 35)
2. Past Paper Q 13 (ii) Page
534
4 Sales with right of return 1. Page 520 (Q 24 and 25)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Contingent Liability
i. Page 250 Q 1 (iv) 2nd Bullet
2. Contingent Asset
i. Page 254 Q 3 (iii)
3. Restructuring
i. Page 255 Q 4 (iii)
4. Theory of restructuring in the context of consolidation
i. Page 26 Point 11

1. Customer Loyalty Program

i. Page 517 Q 21
2. PO satisfied over time or a point in time
i. Page 533 Q 12
ii. Page 475 Example 5

1. Page 496 Example 5

1. Offsetting
i. Page 601 Example in box

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Page 294 Q 7

1. Page 639 Q 10

Crescent College of Accountancy | P a g e | 2

[CAF-05] IFRS-15

1. Page 770 Q 3

1. Analyzing Expense by Nature

i. Page 637 Q 6
2. Refinancing
i. Page 607
3. Disclosures
i. Page 583 Definition of: (Capital Reserve, Revenue Reserve and Executive)

1. Combination of Contracts
i. Page 436
2. PO is satisfied over time or at a point in time
i. Page 473 Explanation of Point 3 above in box
ii. Past Paper Q 15 (i and ii) (Page 535)

1. Page 520 Q 26
2. Page 528 Q 1

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. PO is satisfied over time or at a point in time

i. Past Paper Q 15 (iii) (Page 535)
ii. Page 476 Example 6
2. Separate performance obligation
i. Page 448
ii. Page 452 Example 9, 10 and 11
iii. Page 453 Example 12
iv. Past Paper Q 2 (Page 528)
v. Page 454 Example 13

1. Past Paper Q 19 (Page 393)

2. Past Paper Q 4 (i) (Page 384)

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Example 2 (Page 433)

2. First 2 Lines till Full Stop (Page 435)
3. LO 3 First 3 Lines (Page 448)
4. LO 3.1 a and b (Page 448)
5. LO 4.1 First 3 Lines (Page 455)
6. LO 4.2 Box (Page 455)
7. LO 4.2.2 (Para 56) (Page 459)
8. Few Lines were dictated in class (end of Page 459)
9. 3rd and 4rd line starting with the word conclusion (Page 460)
10. Para 70 Last sentence (Page 463)
11. LO 5 (Para 74) (Page 464)
12. LO 5.1 (Appendix A) First 2.5 Lines, (Para 77) and (Para 78)
13. Para 81 (Last Line) and Para 83 (First 2 Lines) Page 465
14. Para 31 (Page 471)
15. LO 6.2 (including box) (Page 471)
16. LO 6.4 (Para 44 and 45) (Page 477)
17. LO 6.4 (Input Methods and Output Methods) (Page 477)
18. Example 4 and 5 (Page 486-487)

1. Page 188 Q 6

Crescent College of Accountancy | P a g e | 1

[CAF-05] IFRS-15

1. Q 6 (Page 188) Lessor perspective

1. IAS-12
i. Q 5 (vi) (Page 779 of volume-2)
2. IFRS-16
i. Q 2 (Page 782 of volume-2)
3. IFRS-15
i. Q 3 (Page 557)

1. Q 6 (Page 780) (Volume-2)

2. IFRS-15
i. MCQ No 40, 39, 35, 36, 37, 38, 30, 34, 29, 5, 6, 2 and 4
3. IAS-28
i. MCQ No 25, 24, 23, 22, 21, 8, 6, 4, 5 3 and 1

Crescent College of Accountancy | P a g e | 2

 Parties have approved
IFRS 15 will entity can identify each party’s rights
apply if all of
entity can identify the payment terms
the 5 criteria is
met [Para 9] contract has commercial substance
Probability of receipt
entity has performed
1. when Customer has paid all or substantially all amount and

Record revenue amount received is non-refundable

When
contract contract is terminated and
2. or when
does not consideration received is non refundable
meet
And record record consideration
criteria
received as liability if any of the above
2 points are not met

IDENTIFY THE A
CONTRACT(S) contract has wholly unperformed contract
Step 1 each
WITH A does unilateral to terminate (It is a contract where both parties have not yet
party
CUSTOMER not right performed)
exist if
Combine 2 or
more contracts Contracts negotiated as package
(entered at or price or
Combination of Consideration of one depends on: of other
near the same
Contracts performance
time)
if any of Goods/services in the contracts are
following is met a single performance obligation
a. Additional goods/services are distinct; and
Treat it as a
b. Price of additional goods/services represents
separate contract.
standalone selling price
Treat it as termination of existing
a. Additional goods/services are
contract and creation of a new
distinct; and
Modification of contract contract (i.e. adjustment is made
b. Price of additional goods/services is
to remaining units of old
not standalone selling price
contract).
It is treated as a part of existing
contract (i.e. adjustment is made in
Additional goods are not distinct.
already recorded revenue of existing
contract) (Cumulative catch-up)

a good or service (or a bundle of goods or services) that

is distinct
Performance
is a promise to transfer a series of distinct goods or services that are
obligation
substantially the same and that have the same pattern of
transfer to the customer. (when Po satisfied over point
in time)
IDENTIFY THE
if the good or service could be used,
SEPARATE
consumed, sold for an amount that is greater
Step 2 PERFORMANCE customer can benefit than scrap value this condition is met
OBLIGATIONS IN from the good/service
THE CONTRACT on its own or together If a good or service is regularly sold
with other resources separately, this would indicate that
if both of customers generally can benefit from the
A good or the goods/s on its own or in conjunction with
service is following other available resources
distinct criteria Entity does not provide integration
are met promise is services to produce combined output
IFRS-15 separately
The goods/s are not significantly
identifiable Factors/
modified/customised by entity with
from other Example
other goods/s
promises in
the contract goods/s are not highly dependent/
interrelated

Transaction consideration for which an entity is entitled excluding amounts collected on behalf of
price is 3rd parties
Expected values
DETERMINE Variable consideration (Discounts, incentives, penalties)
Most likely
THE
Step 3 Constraining estimates of variable consideration
TRANSACTION
PRICE Credit sale
the existence of a significant financing
Factors when component in the contract Advance from customer
determining the measure the non-cash consideration at fair value
transaction price Non-cash
consideration If a customer to facilitate an account for this only if control
contributes entity fulfiling of as non cash of these goods
goods/s the contract consideration transferred
An entity shall account for
Consideration payable (by seller) to the
consideration payable to a customer as
customer
a reduction of the transaction price

A stand-alone selling price is the price at which an entity would sell a promised
stand-alone selling price
good or service separately to a customer.
ALLOCATE THE
The entity shall allocate a discount proportionately to all performance
TRANSACTION
ALLOCATION OF DISCOUNT obligations in the contract unless it specifically relates to one or more
Step 4 PRICE TO THE
obligations
PERFORMANCE
OBLIGATIONS Adjusted market assessment approach
METHODS OF ESTIMATING STAND
Expected cost plus a margin approach
ALONE SELLING PRICE
Residual approach

The entity has a present right to payment for the asset

The customer has legal title

RECOGNIZE At a point in time The customer has physical possession (except for bill and hold)
REVENUE The customer has the significant risks and rewards of ownership of the asset
WHEN OR AS
The customer has accepted the asset
AN ENTITY
Step 5
SATISFIES 1. customer simultaneously receives and consumes the benefits
PERFORMAN 2. entity’s performance creates or enhances an and the customer controls as the asset is
CE asset created or enhanced
OBLIGATIONS Over time
3. the entity’s performance does not create an and entity has an enforceable right to
asset with an alternative use to the entity payment for performance completed to date
In above 3 cases revenue is recorded by using input or output methods for calculating
percentage of completion
 Comission to staff
Incremental on winning
contract
Costs to obtain contract Travelling costs
to deliver
peoposal
Not incremental
Bid prepration
cost

IFRS-15 Discount voucher

Other Aspects

Customer loyalty progrmme

Receiveable Unconditional right

Presentation Contract asset Conditional right
Contract liability
 Presentation

Goods Delivered First Cash received First No cash

No Delivery
But unconditional right established
Unconditional Right Conditional right Dr. Cash
established established Cr. Contract liability
Contaract is non Contract is
cancelable cancellable
Dr. Receiveable Dr. Contract asset
Cr. Sale Cr. Sale
Following entry on establishing No entry at time of
unconditional right establishing
We are waiting for We are waiting for unconditional right
time to pass condition
to fulfill Dr. Receiveable - Bilawal
Cr. Contract liability