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An entity holds investment in subsidiary at COST in its SFS, AND investment in JV at FVTPL under Ind AS 109. At year-end BOTH are classified as held for sale. The Ind AS 105 treatment:
ABoth at FVTPL
BSubsidiary investment (at cost) → Ind AS 105 (lower of CV and FVLCTS). JV investment (FVTPL per Ind AS 109) → continues at FVTPL (Ind AS 105 measurement does NOT override Ind AS 109)
CBoth at lower of CV and FV less costs to sell
DBoth excluded from FS
Answer & Solution
Correct answer: B. Subsidiary investment (at cost) → Ind AS 105 (lower of CV and FVLCTS). JV investment (FVTPL per Ind AS 109) → continues at FVTPL (Ind AS 105 measurement does NOT override Ind AS 109)
Ind AS 27 paragraph 10: cost-measured investments classified as held for sale follow Ind AS 105. But investments measured under Ind AS 109 continue at their Ind AS 109 measurement — Ind AS 105 does not override that. So FVTPL stays at FVTPL.
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