alleryStart learning →Rs 50,000 research cost capitalised; Ind AS 38 says expense. Adjust:
AYear-one profit by Rs 50,000
BRetained earnings by Rs 50,000
CSecurities premium by Rs 50,000
DRetained earnings by Rs 25,000
Answer & Solution
Correct answer: B. Retained earnings by Rs 50,000
Policy-difference adjustments from pre-transition events are taken directly to retained earnings at the transition date, here a reduction of Rs 50,000.
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Related questions
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