alleryStart learning →Losses beyond a nil interest are provided for only to the extent of:
Aone half of investee loss
Bthe investee paid-up capital
Cthe investor free reserves
Dobligations or payments made
Answer & Solution
Correct answer: D. obligations or payments made
A liability is recognised only if the investor has incurred legal or constructive obligations or made payments on behalf of the associate.
Keep practising Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures
Browse all Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures questions for CA Final, or explore more Financialreporting topics.
Related questions
Equity accounting is usually applied where the investor holds what share of voting shares?If facts and circumstances change, an entity should:A joint operator recognises in a joint operation:A joint venturer accounts for its interest in a joint venture using:In a joint venture, the parties with joint control have rights to the:A joint arrangement is one in which two or more parties have:A parent that skips consolidation and prepares separate statements must disclose:In a qualifying reorganisation, cost of the new parent's investment is: