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Ind AS 111 classifies a joint arrangement as either:
AA subsidiary or an associate
BA joint operation or a joint venture
CAn investment or a financial asset
DA jointly controlled entity or a jointly controlled operation under AS 27
Answer & Solution
Correct answer: B. A joint operation or a joint venture
Ind AS 111 recognises only two types: joint operation (rights to assets, obligations for liabilities) and joint venture (rights to net assets). The AS 27 'jointly controlled entity' bucket is from earlier Indian GAAP, not Ind AS 111.
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