12 Company is engaged in the business of exploration development of OL & Gas Blocks Company Xcurrently holds participating interest in below mentioned producing Black as follows: Block Name Company Company Compasy 2 | + 1 Total AWMD1 30% 60% 10% 100% For the above Block Company XYZ has entered into unincorporated Joint Venture Company is the Operator of the Block AWMO. Company & Company Z are the Joint Operators Company Yincurs all the expenditure on behalf of Joint Venture and raise cash call to Company X & Company at each month and in respect of their share of expenditure incurred in Joint Venture All the manpower and requisite facilities machineries owned by the joint venture and thereby owned by all the Joint Operators For past few months due to liquidity issues. Company Z defutted in payment of cash calle to operators. Therefore, company Y (Operator) has issued notice to company Z for withdrawal of their participating right from 01.04.20X1. However, company has filed the peal with brator on 30.04.2011 Financial performance of company Z has not been improved in subsequent months and therefore company Z has decided to withdraw participating interest rights from Block AWMJ01 and entered into sale agreement with Company X & Company Y. As per the terms of the agreement dated 315 20X1. Company will receive 33 33share & Company Y will receive 66 67% share of Plrights owned by Company Company is required to pay 1 Lacs against 39.33% share of Pl rights owned by Company After signing of sale agreement Operator company ) approach government of India for modification in PSC Production Sharing Contract) le removal of Company Z from PSC AWWD and government has approved his transaction on 30.6.20x1. Government approved for the modification in PSC is essentieven the Industry in which the joint operators sperate Balance sheet of Company & Company Z are as follows: Company Company 2 Particulars 31.920X130.6.20X1 31.5 26X130.6.20 + Assets Non-Current Assets Property Plant & Equipment 5,00.000 10.00.000 150 000 3,00.000 Right of Use Asset 100.000 200 000 10.000 20.000 Development CWIP 50.000 100.000 50.000 1,00.000 Financial Assets Loan receivable 25.000 50.000 25.000 50.000 Total Non Current Assets 6.75.000 11.99.009 235.000 470.000 Currents Inventories 1.00.000 2,00.000 15.000 30.000 Financial Assets Trade receivables 150.000 3,00 000 50.000 100.000 Cash and cash equivalents 2.00.000 4.00.000 100 000 2,00.000 Other Current Assets 225.000 50 000 35.000 50. Total Current Assets 6.75 9.50.000 190.000 280.00 Total Assets 12.50.000 2000.000 425.000 50.000 Equity and Liabilities Equity Equity share capital 3,00,000 300,000 100,000 100 000 Other equity 200.000 200.000 75.000 250.000 Total Equity 5.00.000 5.20.000 1.75.000 350.000 Liabilities Non Current Liabile Provision 400.000 8.00.000 1,00.000 200.000 Other Liabilities 350.000 200 000 50.000 100.000 Total Non-Current Liabilities 3,50.000 11.00,000 1.50.000 3,00.000 Current Liabilities Financial Liabilities Trade Payables 3.00.000 500.000 100.000 200.000 Total Current Liabilities 3.00.000 5.00.000 100.000 2,00.000 Total Liabilities 13.50.000 200.000 4.75.000 8.50 000 Additional Information: 1. Far Value of PPE & Development CWIP cwned by Company Z as per Market participant approach is 5,00.000 & +2.00.000 respectively 2 Far Value of the other ses and liabilities acquired are assumed to be at their carrying values (except cash & cash equivalent). Cash and cash equivalents of Company Z are not to be acquired by Company as per the terms of agreement Tax rates assumed to be 30% 4. As pe Ind A5 28, all the joint operators are joint ventures whereby each parties that have joint control of the arrangement have rights to the net anses of the arrangement and therefore every operator records their share of assets and liabilities in their books You need to determine the following 1 Whether the above acquisition falls under business of asset acquisition as defined under business combination standard Ind AS 103? 2 Determine the acquisition date in the above transaction Prepare Journal entries for the above-mentioned transaction? 4. Draft the Balance Sheet for Company X based on your analysis in Panabove at action date 12 Company is engaged in the business of exploration development of OL & Gas Blocks Company Xcurrently holds participating interest in below mentioned producing Black as follows: Block Name Company Company Compasy 2 | + 1 Total AWMD1 30% 60% 10% 100% For the above Block Company XYZ has entered into unincorporated Joint Venture Company is the Operator of the Block AWMO. Company & Company Z are the Joint Operators Company Yincurs all the expenditure on behalf of Joint Venture and raise cash call to Company X & Company at each month and in respect of their share of expenditure incurred in Joint Venture All the manpower and requisite facilities machineries owned by the joint venture and thereby owned by all the Joint Operators For past few months due to liquidity issues. Company Z defutted in payment of cash calle to operators. Therefore, company Y (Operator) has issued notice to company Z for withdrawal of their participating right from 01.04.20X1. However, company has filed the peal with brator on 30.04.2011 Financial performance of company Z has not been improved in subsequent months and therefore company Z has decided to withdraw participating interest rights from Block AWMJ01 and entered into sale agreement with Company X & Company Y. As per the terms of the agreement dated 315 20X1. Company will receive 33 33share & Company Y will receive 66 67% share of Plrights owned by Company Company is required to pay 1 Lacs against 39.33% share of Pl rights owned by Company After signing of sale agreement Operator company ) approach government of India for modification in PSC Production Sharing Contract) le removal of Company Z from PSC AWWD and government has approved his transaction on 30.6.20x1. Government approved for the modification in PSC is essentieven the Industry in which the joint operators sperate Balance sheet of Company & Company Z are as follows: Company Company 2 Particulars 31.920X130.6.20X1 31.5 26X130.6.20 + Assets Non-Current Assets Property Plant & Equipment 5,00.000 10.00.000 150 000 3,00.000 Right of Use Asset 100.000 200 000 10.000 20.000 Development CWIP 50.000 100.000 50.000 1,00.000 Financial Assets Loan receivable 25.000 50.000 25.000 50.000 Total Non Current Assets 6.75.000 11.99.009 235.000 470.000 Currents Inventories 1.00.000 2,00.000 15.000 30.000 Financial Assets Trade receivables 150.000 3,00 000 50.000 100.000 Cash and cash equivalents 2.00.000 4.00.000 100 000 2,00.000 Other Current Assets 225.000 50 000 35.000 50. Total Current Assets 6.75 9.50.000 190.000 280.00 Total Assets 12.50.000 2000.000 425.000 50.000 Equity and Liabilities Equity Equity share capital 3,00,000 300,000 100,000 100 000 Other equity 200.000 200.000 75.000 250.000 Total Equity 5.00.000 5.20.000 1.75.000 350.000 Liabilities Non Current Liabile Provision 400.000 8.00.000 1,00.000 200.000 Other Liabilities 350.000 200 000 50.000 100.000 Total Non-Current Liabilities 3,50.000 11.00,000 1.50.000 3,00.000 Current Liabilities Financial Liabilities Trade Payables 3.00.000 500.000 100.000 200.000 Total Current Liabilities 3.00.000 5.00.000 100.000 2,00.000 Total Liabilities 13.50.000 200.000 4.75.000 8.50 000 Additional Information: 1. Far Value of PPE & Development CWIP cwned by Company Z as per Market participant approach is 5,00.000 & +2.00.000 respectively 2 Far Value of the other ses and liabilities acquired are assumed to be at their carrying values (except cash & cash equivalent). Cash and cash equivalents of Company Z are not to be acquired by Company as per the terms of agreement Tax rates assumed to be 30% 4. As pe Ind A5 28, all the joint operators are joint ventures whereby each parties that have joint control of the arrangement have rights to the net anses of the arrangement and therefore every operator records their share of assets and liabilities in their books You need to determine the following 1 Whether the above acquisition falls under business of asset acquisition as defined under business combination standard Ind AS 103? 2 Determine the acquisition date in the above transaction Prepare Journal entries for the above-mentioned transaction? 4. Draft the Balance Sheet for Company X based on your analysis in Panabove at action date