Home › CA Final › financialreporting › Ind AS 111 — Joint Operation Accounting, Acquisition of Interest as Business & AS 27 vs Ind AS 111 › Identify the statement that is INCORRECT about a…
Identify the statement that is INCORRECT about acquiring an interest in a joint operation that is a business (under Ind AS 103 principles applied via Ind AS 111).
AAcquisition-related costs are capitalised to the assets acquired
BDeferred tax that arises from initial recognition of assets/liabilities is recognised, except DTL on initial recognition of goodwill
CGoodwill is the excess of consideration transferred over net assets and is impairment-tested under Ind AS 36
DIdentifiable assets and liabilities are measured at FV at acquisition
Answer & Solution
Correct answer: A. Acquisition-related costs are capitalised to the assets acquired
Acquisition-related costs are EXPENSED in the period incurred under Ind AS 103 — not capitalised. The other three are correct restatements of Ind AS 103 principles applied via Ind AS 111 paragraph 21A.
Related questions
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 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