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Under Ind AS 28, the equity method initially records the investment in an associate or joint venture at:
ACarrying value in the books of the investee
BCost
CFair value at the date of acquisition
DLower of cost and net realisable value
Answer & Solution
Correct answer: B. Cost
Initial recognition is at COST. Subsequent measurement adjusts the carrying amount for the investor's share of post-acquisition changes in the investee's net assets (P&L, OCI, distributions).
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