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An investment entity must measure its investments in subsidiaries at FVTPL under Ind AS 109 (Ind AS 110 paragraph 31). In its separate FS, the same investment is measured:
AAt fair value through OCI
BAt FVTPL — Ind AS 27 paragraph 11A requires consistency with Ind AS 110
CAt equity method
DAt cost
Answer & Solution
Correct answer: B. At FVTPL — Ind AS 27 paragraph 11A requires consistency with Ind AS 110
Investment entities must mirror Ind AS 110's FVTPL measurement in SFS — Ind AS 27 paragraph 11A. Cost or equity method would be inconsistent with the substance of an investment entity's portfolio.
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