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An entity is a venture capital organisation holding 22% of Company P. Under Ind AS 28, it elected FVTPL for P. In its separate FS, the investment in P should be measured:
AAt FVTPL — the same measurement applied at consolidation level (Ind AS 27 paragraph 10 alignment with Ind AS 28 election)
BAt FVOCI
CUsing the equity method
DAt cost
Answer & Solution
Correct answer: A. At FVTPL — the same measurement applied at consolidation level (Ind AS 27 paragraph 10 alignment with Ind AS 28 election)
Where Ind AS 28 has been elected for VC organisations / mutual funds / unit trusts / insurance investment funds to measure associates/JVs at FVTPL, Ind AS 27 paragraph 11 requires the same FVTPL measurement in SFS. Cost or equity method are not consistent with the consolidation choice.
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