DEF Ltd. is a diversified business group operating in multiple business segments across different parts of the world with multiple subsidiaries. It…

DEF Ltd. is a diversified business group operating in multiple business segments across different parts of the world with multiple subsidiaries. It maintains its books of accounts and publishes its annual financial statements under Indian Accounting Standards. The finance team has been working on closing the books of accounts and generating financial statements for the year ended 31 st March 20X1 and are facing issues in the following transactions while finalization of financial statements: (i) Profit attributable to ordinary equity holders of the parent entity for year 20X1 1,200,000 Weighted average number of ordinary shares outstanding during year 20X1 500,000 shares Average market price of one ordinary share during year 20X1 20.00 Weighted average number of shares under option during year 20X1 100,000 shares Exercise price for shares under option during year 20X1 15.00 (ii) DEF Ltd. enters into a contract to buy 100 tonnes of cocoa beans at 1,000 per tonne for delivery in 12 months. On the settlement date, the market price for cocoa beans is 1,500 per tonne. The contract cannot be settled net in cash and is entered for delivery of cocoa beans in line with DEF Ltd.'s expected purchase/ usage requirements. (iii) DEF Ltd. invests in compulsorily convertible preference shares (CCPS) issued by its subsidiary B Ltd. at 1,000 each (10face value +990 premium). Under the terms of the instrument, each CCPS is compulsorily convertible into one equity share of B Ltd at the end of 5 years. Such CCPS carry dividend @ 12% per annum, payable only when declared at the discretion of B Ltd. Analyze the transactions mentioned above and choose the most appropriate option in the below questions 7 to 10 in line with relevant Ind AS: