Home › CA Final › financialreporting › Ind AS 28 — Impairment, Discontinuing Equity Method, Held for Sale & Carve-outs from IAS 28 / AS 23 › Under Ind AS 28, when an investment ceases to be…
Under Ind AS 28, when an investment ceases to be an associate or joint venture because it becomes a SUBSIDIARY, the previously held interest must be:
AWritten off entirely
BCarried forward at carrying amount under equity method
CRecognised at lower of cost and fair value
DRemeasured to acquisition-date FV with the gain/loss recognised in P&L, applying Ind AS 103 / Ind AS 110
Answer & Solution
Correct answer: D. Remeasured to acquisition-date FV with the gain/loss recognised in P&L, applying Ind AS 103 / Ind AS 110
When an associate/JV becomes a subsidiary, the step acquisition rules of Ind AS 103 apply — remeasure the previously held interest to acquisition-date FV through P&L (mirrors paragraph 42 of Ind AS 103).
Related questions
An associate's investment portion classified as held for sale subsequently NO LONGER meetsUnder Ind AS 28, interest on a long-term loan to an associate that is in substance part ofAn entity has long-term loan ₹3,00,000 to an associate (substantively part of net investmeAS 23 (legacy Indian GAAP) allowed an investor's share of losses in an associate to be recWhen an entity LOSES significant influence over an associate but retains a financial assetCarve-out from IAS 28 (carried into Ind AS 28): the requirement for uniform accounting polUnder Ind AS 28, when computing 'value in use' for impairment of an associate, an entity mIdentify the statement that is NOT 'objective evidence of impairment' of an associate/JV u