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Under Ind AS 110, "VARIABLE RETURNS" from an investee include:
AOnly returns measured at fair value through profit or loss
BAny returns that have the potential to vary as a result of the investee's performance — positive only, negative only, or both
COnly positive cash returns received from the investee
DOnly dividend income from equity investments
Answer & Solution
Correct answer: B. Any returns that have the potential to vary as a result of the investee's performance — positive only, negative only, or both
Para B56 — variable returns are NOT fixed; they CAN vary with the investee's performance. They can be positive only, negative only, or both. The term covers dividends, fair-value changes, performance fees, synergistic benefits, tax benefits, residual interests, access to liquidity — and even fixed-coupon bonds (since fixed interest is exposed to default/credit risk and thus variability).
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