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Where the transaction acquiring an additional interest in a joint operation (which is a business) is between entities under COMMON CONTROL, the joint operator should:
AApply Appendix C of Ind AS 103 (common control combination guidance) instead of paragraph 21A
BApply equity method going forward
CIgnore the transaction
DApply Ind AS 103 paragraph 21A as for any business acquisition
Answer & Solution
Correct answer: A. Apply Appendix C of Ind AS 103 (common control combination guidance) instead of paragraph 21A
Ind AS 111 explicitly redirects common-control transactions to Appendix C of Ind AS 103. The business-combination FV measurement does not apply between commonly controlled parties — accounting follows the pooling-of-interests-style guidance in Appendix C.
Related questions
Identify the statement that is INCORRECT about acquiring an interest in a joint operation Identify the BEST description of how a joint operator accounts for its interest in a jointWhen an entity contributes ONLY ASSETS or GROUPS OF ASSETS THAT DO NOT CONSTITUTE BUSINESSAS 27 provided an exemption from proportionate consolidation when the joint venture was 'aWhen a party that previously merely PARTICIPATED in a joint operation (no joint control) sSale BY a joint operator TO its joint operation: when the transaction provides evidence ofA Ltd. has 60% interest in a joint operation. A Ltd. PURCHASES an asset from the JO; the JUnder Ind AS 111, an entity classified an interest as a jointly controlled ENTITY under AS