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When a joint operation is FORMED and one of the parties contributes an EXISTING BUSINESS (as defined in Ind AS 103) to that joint operation:
AInd AS 111 rules alone apply
BNo FV measurement is required
CInd AS 110 consolidation applies
DThe contributing party applies Ind AS 103 to the extent of its share, plus other applicable Ind ASs that don't conflict with Ind AS 111
Answer & Solution
Correct answer: D. The contributing party applies Ind AS 103 to the extent of its share, plus other applicable Ind ASs that don't conflict with Ind AS 111
Ind AS 111 paragraph 21A: when an entity acquires (or contributes on formation) an interest in a joint operation that constitutes a business, the entity applies Ind AS 103 to the extent of its share. Plain asset/group-of-assets contributions are not in scope.
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