Can you highlight how a CPL franchise investment is structured, accounted for under Ind AS, and impacts financial statements?

Under Ind AS, KAL will consolidate GSB Warriors in its financial statements. Franchise rights will appear as a major intangible asset (non-amortised but tested for impairment since definite term of the franchise rights has not been given in the question), while player contracts will be amortised. Stadium lease will bring in ROU assets and lease liabilities. Profit & Loss will reflect new revenue streams but also amortisation, depreciation, finance cost, and potential impairment charges. NCI will also appear in consolidated equity and P&L. Accounting under Ind AS Since KAL acquired 70% controlling stake in GSB Warriors, this is a business combination under Ind AS 103 'Business Combinations'. Total consideration paid is 2,500 crores (cash + equity financing). Identifiable Assets & Liabilities (Fair Value) 1. Franchise Right (Intangible Asset) of 1,500 crores is assumed as having indefinite life; hence, not amortised but tested annually for impairment under Ind AS 38. 2. Player Contracts (Intangible Asset) of 500crores has a finite life (over contract term), hence, are amortised annually over the contract term. 3. Working Capital & Other Assets of 500crores is recognised at fair value. 4. Leased Stadium & Training Facility is recognised as Right-of-Use Asset (ROU) with corresponding Lease Liability under Ind AS 116. Annual depreciation on ROU and finance cost on lease liability will be charged/recognised in P/L. If purchase consideration is more than fair value of net assets acquired, KAL will recognise Goodwill otherwise Bargain Purchase Gain would be recognised. Since KAL acquired 70% (controlling stake), the remaining 30% is NCI. NCI measured at fair value or proportionate share of net assets (policy choice under Ind AS 103). Impact on Financial Statements i. In Consolidated Balance Sheet: Intangible assets (Franchise rights + Player contracts), ROU assets (leased stadium/training facility) and Goodwill, if any, will be shown as non-current item in the Balance Sheet. Working capital will appear as current item in the balance sheet. Under Equity, any purchase consideration paid to GSB warriors forms part of Equity share capital while NCI of 30% will be recognised under Equity. Other Equity will include consolidated Profit and Loss. Lease Liability will be recognised as non-current item. ii. In the Consolidated Statement of Profit and Loss: Revenue streams from CPL franchise (broadcasting, sponsorships, ticket sales, merchandise) will be recognised. Amortisation of player contracts, Depreciation of ROU asset, finance cost on lease liability and any Impairment loss on franchise right and goodwill will appear as expenses item in the Statement of Profit and Loss. Note: Alternative presentation is also possible.