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CA Final Ind AS 28 — Associates & JVs: Significant Influence, Equity Method, Exemptions — practice questions
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Practice CA Final Ind AS 28 — Associates & JVs: Significant Influence, Equity Method, Exemptions in the app →Under Ind AS 28, 'significant influence' is the power to:Ind AS 28's presumption regarding significant influence states that, absent clear evidence to the contrary, hoUnder Ind AS 28, the equity method initially records the investment in an associate or joint venture at:E Ltd. holds 25% of an investee; three other investors each hold 25%. Decisions about financial and operating Kuku Ltd. holds 12% voting rights in Boho Ltd.; Boho's board has 8 members, 2 of whom are appointed by Kuku. ERS Ltd. (pharma) holds 15% of XY Ltd. (a packaging maker). 90% of XY's output is sold to RS. Does RS have signR Ltd. holds 10% of Y Ltd.'s equity and has licensed essential tyre-manufacturing technology to Y. Y is dependAn entity holds 10% of an investee and an option to acquire another 15%. The entity does NOT currently have thM Ltd. holds 10% in an investee. 9 other investors each hold 10%. Decisions about most relevant activities areAn investor holds compulsorily convertible preference shares (CCPS) in an investee. The CCPS do NOT presently A mutual fund holds 22% of the equity of Company P. Ordinarily P would be presumed an associate. The mutual fuA Ltd. invests ₹1,00,000 for 25% of B Ltd. (associate). In year 1, B earns ₹10,000 profit, ₹2,000 OCI and paysA wholly-owned subsidiary holds investments in associates. The subsidiary's ultimate parent prepares consolidaAn investor's interest in an associate is held PARTIALLY through a venture capital organisation. Under Ind AS An entity loses significant influence over an associate when it loses the power to participate in financial/op