Apex Ltd. holds a 25% interest of ₹ 10,00,000 in Beta Ltd., an associate and applies the equity method of accounting to its equity shares. In…

Apex Ltd. holds a 25% interest of ₹ 10,00,000 in Beta Ltd., an associate and applies the equity method of accounting to its equity shares. In addition to the equity shares, Apex Ltd. has two other interests in Beta Ltd.: 1. Non-cumulative preference shares of ₹ 5,00,000, forming part of the net investment in Beta Ltd. These preference shares are measured at fair value in accordance with Ind AS 109. 2. A long-term loan of ₹ 3,00,000 carrying interest at 10% p.a., with interest receivable at the end of each year. The loan is accounted for at amortised cost under Ind AS 109 and also forms part of Apex Ltd.'s net investment in Beta Ltd. During the year 1, the following events occur: Year Change in FV of preference shares under Ind AS 109 Impairment loss/(reversal) on long-term loan under Ind AS 109 Apex Ltd.'s share in profit/(loss) of Beta Ltd. 1 (₹ 50,000) ₹ 50,000 loss (₹ 16,00,000) There is no objective evidence of impairment in the net investment as a whole. Apex Ltd. has no legal or constructive obligation to make further payments or absorb losses of Beta Ltd. beyond its interests. For the long-term loan, Apex Ltd. continues to accrue contractual interest at 10% p.a. on the original carrying amount of ₹ 3,00,000, irrespective of any adjustment arising from application of Ind AS 28. Analyze the transactions mentioned above and choose the most appropriate option in questions 18 to 20 in line with relevant Ind AS: