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Parent Ltd. is exempted from preparing consolidated FS under paragraph 4(a) of Ind AS 110. Identify the correct treatment:
AParent Ltd. has no FS obligations
BParent Ltd. must prepare consolidated FS
CParent Ltd. presents separate FS as its ONLY financial statements (Companies Act, 2013 still requires it to prepare FS)
DParent Ltd. must apply equity method in SFS instead
Answer & Solution
Correct answer: C. Parent Ltd. presents separate FS as its ONLY financial statements (Companies Act, 2013 still requires it to prepare FS)
When the consolidation exemption applies, the entity presents SFS as its only FS (still required under the Companies Act, 2013). Equity method is not available in SFS under Ind AS 27.
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