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Carve-out from IAS 28 (carried into Ind AS 28): the requirement for uniform accounting policies between investor and associate is:
ALimited to foreign associates only
BRemoved entirely — associates may always use any policy they wish
CAbsolute — there is no exception under Ind AS 28
DSubject to the qualifier 'unless impracticable to do so', recognising that certain associates (e.g. regional rural banks) may not yet be in a position to adopt Ind AS
Answer & Solution
Correct answer: D. Subject to the qualifier 'unless impracticable to do so', recognising that certain associates (e.g. regional rural banks) may not yet be in a position to adopt Ind AS
Ind AS 28 paragraph 35 adds 'unless impracticable to do so' (Indian carve-out from IAS 28). The reason cited is that some associates of nationalised banks (regional rural banks) may not yet be applying Ind AS.
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