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An associate's investment portion classified as held for sale subsequently NO LONGER meets the held-for-sale criteria. Under Ind AS 28, the correct accounting is:
ADiscontinue equity method permanently
BRecognise the change prospectively only
CContinue at Ind AS 105 fair value less costs to sell
DApply equity method RETROSPECTIVELY from the date the portion was first classified as held for sale; restate prior-period FS accordingly
Answer & Solution
Correct answer: D. Apply equity method RETROSPECTIVELY from the date the portion was first classified as held for sale; restate prior-period FS accordingly
Ind AS 28 mandates retrospective restatement: equity method is applied from the original held-for-sale classification date as if the held-for-sale tag had never been applied. Prior-period financial statements are amended accordingly.
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