Y Limited purchased a building for 30,00,000 on 1st April, 2021. The useful life of the building is estimated at 15 years. On 31st March, 2023, Y…

1. Value of property immediately before the classification as held for sale, as per Ind AS 16, as on 31st March, 2023 Particulars ₹ Purchase Price 30,00,000 Less: Accumulated Depreciation (for two years i.e.2,00,000 per year) (4,00,000) 26,00,000 Less: Impairment loss (26,00,000 - 23,50,000) (2,50,000) Carrying Amount 23,50,000 On initial classification as held for sale on 31st March, 2023, the value will be lower of: Carrying amount after impairment 23,50,000 Fair Value less Cost to sell 23,00,000 On 31st March, 2023, non-current asset classified as held for sale will be recorded at 23,00,000. Depreciation of 2,00,000 (for the year) and Impairment Loss of 3,00,000(₹ 2,50,000 +50,000) is charged in profit or loss for the year ended 31st March, 2023. 2. On 31st March, 2024, held for sale property is reclassified as criteria is not met. The value will be lower of: Carrying amount immediately before classification on 31st March, 2023 23,50,000 Less: Depreciation based on 13 years balance life (₹ 1,80,769) Carrying amount had the asset is not classified as held for sale 21,69,231 Recoverable Amount 25,00,000 Property will be valued at 21,69,231on 31st March, 2024. Adjustment to the carrying amount of 1,30,769 (₹ 23,00,000 - 21,69,231) is charged to the profit or loss.