Home › CA Final › financialreporting › Ind AS 28 — Impairment, Discontinuing Equity Method, Held for Sale & Carve-outs from IAS 28 / AS 23 › When an entity LOSES significant influence over …
When an entity LOSES significant influence over an associate but retains a financial asset interest, the gain/loss in P&L is:
AFV of retained interest − cost of original investment
BCarrying amount at discontinuation − proceeds from disposal
C(FV of retained interest + proceeds from partial disposal) − carrying amount at the date equity method was discontinued
DAlways zero, because no actual disposal has occurred
Answer & Solution
Correct answer: C. (FV of retained interest + proceeds from partial disposal) − carrying amount at the date equity method was discontinued
Ind AS 28 paragraph 22(b): gain/loss = (FV of retained interest + proceeds from disposing of part interest) − carrying amount at discontinuation. The retained interest is thereafter measured per Ind AS 109.
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