DEF Ltd. is a globally diversified business conglomerate with operations spanning across various business sectors worldwide. The company adheres to…

DEF Ltd. is a globally diversified business conglomerate with operations spanning across various business sectors worldwide. The company adheres to Indian Accounting Standards for maintaining its financial records and annually releases its financial statements. As the finance team progresses towards finalizing the financial statements for the fiscal year ending on 31 March 20X3, the team is stuck up in the accounting of the following transactions: (i) On 1 June 20X2, DEF Ltd. decided to dispose of the business and current and non-current assets of one of its divisions related to specialty chemicals business which it had acquired several years ago. This disposal does not involve DEF Ltd. withdrawing from a particular market sector. The carrying values on 1 June 20X2 of the assets to be disposed of were as follows: Particulars ₹ in Million Goodwill 10.0 Property, Plant and Equipment 20.0 Patents and trademarks 8.0 Inventories 15.0 Trade Receivables 10.0 None of the assets of the business had suffered impairment as at 1 June 20X2. At that date the inventories and trade receivables of the business were already stated at no more than their recoverable amounts. DEF Ltd. offered the business for sale at a price of 46.5 million, which was considered to be reasonably achievable. DEF Ltd. estimated that the direct costs of selling the business would be - 5,00,000. These estimates have not changed since 1 June 20X2 and DEF Ltd. estimates that the business will be sold by 31 March 20X3 at the latest. (ii) The government provided DEF Ltd. with a grant of 21 million to assist it in the development of the factory. This grant was provided in two parts: (1) 6 million of the grant was a payment by the government as an inducement to DEF Ltd. to begin developing the factory. No conditions were attached to this part of the grant. (2) 15 million of the grant related to the construction of the factory at a cost of 60 million. The land was leased so the whole of the 60 million is depreciable over the estimated 40 year useful life of the factory. Analyze the transactions mentioned above and choose the most appropriate option in the below questions 5 to 8 in line with relevant Ind AS: