The Central Government of India recently made disclosures from the its latest balance sheet, in terms of the assets that it owns: office equipment worth ₹40,731 crore; roads valued at ₹10,256 crore, land ₹2,19,404 crore, residences and offices ₹44,283 crore, bridges ₹11,717 crore, irrigation projects ₹1,416 crore, power projects ₹368 crore, and vehicles ₹43,554 crore.

The total value of the Centre’s assets for which the data are available, was ₹10,31,139 crore. Of this, physical assets were worth ₹4,06,129 crore and financial assets, mainly its shareholdings in public sector companies — both unlisted and those listed on the bourses — were worth ₹6,25,010 crore.

Based on the above, answer the following:

(a) Comment on the figures that seem surprising. Preferably, provide explanations for some extremes such as value of office equipment being more than the value of roads and such.

(b) IFRS 13 requires fair value measurements and disclosures about fair value measurement. The standard defines fair value on the basis of an ‘exit price’ notion, which results in a marketbased, rather than entity-specific, measurement. Are these figures a reflection of the same? Discuss.

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Assets Cash Inventories Current Assets Machinery Land Total Assets Accounts Payable Accrued Interest Promissory Note Payable Current Maturity of Long-term Loan Current portion deferred taxes Current Liabilities Long-term Loan, Secured Non-current portion deferred taxes Total Liabilities Total Shareholders Funds Total Liabilities and Shareholders Funds All figures in million Without deferred taxes 10 400 410 500 1,200 2,110 50 30 250 55 0 385 375 0 760 1,350 2,110