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Continuing: AFTER the New-Co interposition, the same Ind AS 27 paragraph 13 cost-measurement rule applies even when Company A has NO subsidiaries (i.e. Company A is not itself a parent before restructuring). Is this correct?
AOnly if the new parent issues bonds in addition to equity
BYes — paragraph 14 explicitly extends paragraph 13 to non-parent entities that interpose a new parent above themselves
CNo — paragraph 13 applies only when the original entity is already a parent
DOnly if Company A has at least one associate
Answer & Solution
Correct answer: B. Yes — paragraph 14 explicitly extends paragraph 13 to non-parent entities that interpose a new parent above themselves
Ind AS 27 paragraph 14 explicitly extends the cost-measurement rule to cases where an entity that is not a parent establishes a new parent above itself. Same accounting outcome.
Related questions
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