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When an INVESTMENT ENTITY CEASES TO BE an investment entity, it accounts for an investment in a subsidiary by:
ADiscontinue financial statements until consolidated FS are available
BOnly the cost route — using FV at change date as DEEMED COST
CEquity method retrospectively
DEither (a) cost with FV at change-of-status as deemed cost, OR (b) continue to account in accordance with Ind AS 109
Answer & Solution
Correct answer: D. Either (a) cost with FV at change-of-status as deemed cost, OR (b) continue to account in accordance with Ind AS 109
Ind AS 27 paragraph 11B offers a CHOICE: deemed-cost route (FV at change date becomes cost) OR continue per Ind AS 109. Equity method is not an option in SFS.
Related questions
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