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A subsidiary becomes a first-time Ind AS adopter LATER than its parent. Under Ind AS 101, the subsidiary may measure its assets and liabilities at:
AOnly the parent's CFS carrying amounts — option (a) is mandatory
BOnly the amounts required by Ind AS 101 at the subsidiary's own transition date
CEither (a) the carrying amounts that would be included in the PARENT's consolidated FS at the parent's transition date, OR (b) the amounts required by Ind AS 101 at the subsidiary's own transition date
DWhichever amounts give the higher reported net assets
Answer & Solution
Correct answer: C. Either (a) the carrying amounts that would be included in the PARENT's consolidated FS at the parent's transition date, OR (b) the amounts required by Ind AS 101 at the subsidiary's own transition date
Para D16 — when a subsidiary adopts later than the parent, the SUBSIDIARY has a choice: (a) use the carrying amounts from the parent's CFS (avoiding a second transition) OR (b) apply Ind AS 101 freshly at the sub's own transition date. The reverse case (parent adopts later than sub) requires the parent to use the sub's carrying amounts adjusted for consolidation/acquisition effects — no choice in that direction.
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