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

ABC 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 st March, 2026, the team is stuck up in the accounting of the following transactions: On 1 st June, 2025, ABC Ltd. decided to dispose of the business including current and non-current assets of one of its divisions related to the Fertilizer business which it had acquired several years ago. This disposal does not involve ABC Ltd. withdrawing from a particular market sector. The carrying values on 1 st June, 2025 of the assets to be disposed of were as follows: Particulars ₹ in Million Goodwill 20.0 Property, Plant and Equipment 40.0 Patents and trademarks 16.0 Inventories 30.0 Trade Receivables 20.0 None of the assets of the business had suffered impairment as at 1 st June, 2025. At that date the inventories and trade receivables of the business were already stated at no more than their recoverable amounts. ABC Ltd. offered the business for sale at a price of 93 million, which was considered to be reasonably achievable. ABC Ltd. estimated that the direct costs of selling the business would be - 10,00,000. These estimates have not changed since 1 st June, 2025 and ABC Ltd. estimates that the business will be sold by 31 st March, 2026 at the latest. On 30 th April, 2026, the Company discovered that the closing inventory for 31 st March, 2026 (the previous year) was overvalued by - 10 Lakhs in its cement business due to a calculation error. The financials of the company was approved by competent authority on 15 th April, 2026 for the financial year 2025-2026. ABC Ltd. enters into an arrangement with a Customer during the year, for providing customized software. Based on its experience, ABC Ltd. determines that writing the software will take approximately 200 Hours in total and charges - 300 per Man-hour. After incurring 100 hours of time, ABC Ltd. and the customer agreed to change in the specification of the Software and thereby increasing the estimated Man-hours by another 50 Hours to be charged at the rate of 200 per Man-hour by ABC Ltd. On the basis of information provided in the above case scenario, you are required to choose most appropriate answer to the below mentioned questions from 9 to 12.