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Mr. Ram briefly held control over both entities A and B JUST BEFORE a transaction in which B acquires control over A from Mr. Ram. Mr. Ram's prior common control over both was TRANSITORY. Identify the accounting treatment.
ANo accounting change required
BInd AS 110 consolidation only
CInd AS 103 mainline (acquisition method) — Ram's brief common control is not substantive; B's acquisition of A is a real change of control
DCommon control combination per Appendix C of Ind AS 103
Answer & Solution
Correct answer: C. Ind AS 103 mainline (acquisition method) — Ram's brief common control is not substantive; B's acquisition of A is a real change of control
Transitory common control does NOT bring the transaction within Appendix C. The substance is B obtaining control of A — a real business combination accounted under the acquisition method.
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