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Which of the following is explicitly OUTSIDE the scope of Ind AS 103?
AA reverse acquisition where the legal acquirer is the accounting acquiree
BThe acquisition of a group of assets that does not constitute a business
CAcquisition of 60% of a wholly-operating manufacturing subsidiary
DAcquisition of control over an investee with multiple revenue-generating processes
Answer & Solution
Correct answer: B. The acquisition of a group of assets that does not constitute a business
Ind AS 103 specifically excludes (a) the formation of a joint arrangement, and (b) the acquisition of an asset or group of assets that does not constitute a business. Reverse acquisitions and operating-subsidiary acquisitions remain inside Ind AS 103.
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