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An investment in a JV is initially measured at COST in SFS. The investment is later classified as held for sale. The applicable measurement is:
AContinue at cost
BEquity method retrospectively
CInd AS 105: lower of carrying amount and fair value less costs to sell
DFVTPL under Ind AS 109
Answer & Solution
Correct answer: C. Ind AS 105: lower of carrying amount and fair value less costs to sell
Cost-measured investments classified as held for sale are subject to Ind AS 105 — lower of CV and FVLCTS. Note: if the JV had been measured at Ind AS 109 FVTPL/FVOCI, Ind AS 105 would NOT override that measurement.
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