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A party that PARTICIPATES IN but does NOT have joint control over a joint operation accounts for its interest:
ABy ignoring the interest
BAlways by applying equity method
CAs a joint operator if it has rights to assets and obligations for liabilities; otherwise, per the Ind AS applicable to its interest (e.g. Ind AS 109)
DAlways by full consolidation
Answer & Solution
Correct answer: C. As a joint operator if it has rights to assets and obligations for liabilities; otherwise, per the Ind AS applicable to its interest (e.g. Ind AS 109)
Ind AS 111 paragraph 23: a participant without joint control still recognises its rights to assets and obligations for liabilities if it has them. Otherwise, the interest is accounted under the applicable Ind AS (e.g. financial asset under Ind AS 109).
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