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An Integral Foreign Operation (IFO) carries on its business as if it were:
AA separate company
BA joint venture
CA government undertaking
DAn extension of the reporting enterprise (parent)
Answer & Solution
Correct answer: D. An extension of the reporting enterprise (parent)
1. Step 1: Per AS 11, IFO is an extension of the reporting enterprise; its transactions are treated as if they were the enterprise's own.
2. Step 2: NIFO operates with substantial autonomy.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 15 "Accounting for Branches including Foreign Branches"_