Home › CA Final › financialreporting › Ind AS 111 — Joint Operation Accounting, Acquisition of Interest as Business & AS 27 vs Ind AS 111 › Under Ind AS 111, when a joint operator INCREASE…
Under Ind AS 111, when a joint operator INCREASES its interest in a joint operation that is a business AND RETAINS joint control, the previously held interest is:
AWritten off
BNOT remeasured (joint operator continues to apply same proportionate accounting)
CReclassified to held-for-sale
DRemeasured to FV through P&L
Answer & Solution
Correct answer: B. NOT remeasured (joint operator continues to apply same proportionate accounting)
Ind AS 111 paragraph B33CA: when joint control is RETAINED, previously held interests in the joint operation are not remeasured. Contrast with step acquisitions under Ind AS 103 where control passes — there, the previously held interest IS remeasured.
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