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An entity must apply the SAME accounting (cost vs Ind AS 109) for EACH CATEGORY of investments in SFS. Identify the correct statement.
AAll investments must use the same method (cost or Ind AS 109) irrespective of category
BCost is mandatory for all categories
CEach individual investment is free to use any method
DSubsidiaries at cost; associates at FV; JVs at FV — different categories may use different methods, but every investment within a category must use the same method
Answer & Solution
Correct answer: D. Subsidiaries at cost; associates at FV; JVs at FV — different categories may use different methods, but every investment within a category must use the same method
Ind AS 27 paragraph 10: the chosen method applies consistently to EACH CATEGORY. So an entity may pick 'cost for subsidiaries' but 'FVTPL for associates/JVs' — different categories can differ, but within a category all investments must be on the same footing.
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