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Under Ind AS 101, NON-CONTROLLING INTERESTS rules of Ind AS 110 apply:
AOnly to wholly-owned subsidiaries with no NCI
BProspectively from the date of transition (allocation of comprehensive income to NCI, loss-of-control accounting, etc.) — unless the entity elects to apply Ind AS 103 retrospectively to past business combinations
CRetrospectively to all historical NCI accounting under previous GAAP
DOnly to acquisitions occurring after the first Ind AS reporting period
Answer & Solution
Correct answer: B. Prospectively from the date of transition (allocation of comprehensive income to NCI, loss-of-control accounting, etc.) — unless the entity elects to apply Ind AS 103 retrospectively to past business combinations
Mandatory exception (NCI) — Ind AS 110's rules on NCI (including allocating losses even into deficit balances, accounting for changes in ownership without loss of control, accounting for loss of control) apply PROSPECTIVELY from the transition date. If the entity elects to retrospectively restate past business combinations under Ind AS 103, it must also apply Ind AS 110 NCI rules from that date — but otherwise prospective.
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