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When a party that previously merely PARTICIPATED in a joint operation (no joint control) subsequently OBTAINS joint control over that same JO (which is a business), the previously held interest is:
AReclassified to held-for-sale
BRemeasured to FV through P&L
CNOT remeasured — the joint operator carries the previously held interest forward
DRecognised at zero and rebuilt at FV
Answer & Solution
Correct answer: C. NOT remeasured — the joint operator carries the previously held interest forward
Ind AS 111 paragraph B33CA(b) clarifies that the previously held interest is NOT remeasured even when the party transitions from non-joint-control to joint control. Contrast Ind AS 103 step acquisitions for subsidiary control — there, remeasurement is required.
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 'aSale BY a joint operator TO its joint operation: when the transaction provides evidence ofWhere the transaction acquiring an additional interest in a joint operation (which is a buA 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