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Under Ind AS 110, the impairment / consolidation framework does NOT apply to:
ASubsidiaries whose financial statements use a different reporting framework
BSubsidiaries that the parent intends to dispose of within 12 months
CSubsidiaries that operate in foreign currencies
DPost-employment benefit plans or other long-term employee benefit plans within Ind AS 19's scope
Answer & Solution
Correct answer: D. Post-employment benefit plans or other long-term employee benefit plans within Ind AS 19's scope
Para 4(b) — Ind AS 110 does NOT apply to post-employment benefit plans or other long-term employee benefit plans (Ind AS 19 governs them). Foreign-currency operations, planned-dispositions, and different-framework subsidiaries ARE within scope (with translation/restatement requirements as needed).
Related questions
An investor holds 30% of equity AND is also the asset manager of an investment vehicle. ThMr. X (an individual) holds 100% of Company A. Mr. X is not a corporate entity and does noUnder Ind AS 110, PROTECTIVE RIGHTS are:Under Ind AS 110, SUBSTANTIVE RIGHTS confer power if the holder has the PRACTICAL ABILITY A Ltd. is the asset manager of Fund X (a venture capital fund). A holds 10% of Fund X's unA Ltd. and B Ltd. set up C Ltd. to build and operate a toll road. A Ltd. constructs (2 yeaFive investors each own 20% of Entity Z and each has one seat on Z's seven-member board. SUnder Ind AS 110, an investor has POWER over an investee through: