Skip to content

CA Final · Financial Reporting · Ind AS 111 Joint Arrangements

A student preparing Ind AS 111 notes writes four statements on its comparison with IFRS 11. Which statement reflects the difference described in Appendix 1 of Ind AS 111 regarding the acquisition of an interest in a joint operation?

Ind AS 111 points to Appendix C of Ind AS 103, Business Combinations under Common Control, for acquiring an interest in a joint operation where the sharing parties are under the same ultimate control before and after, and the control is not transitory. IFRS 11 has no such reference.

  1. AInd AS 111 has an identical treatment and no difference from IFRS 11 exists
  2. BInd AS 111 refers to Appendix C of Ind AS 103 for acquisitions of a joint operation interest when parties are under common control of the same ultimate controlling party both before and after, and control is not transitoryCorrect
  3. CInd AS 111 prohibits acquiring interests in joint operations under common control
  4. DInd AS 111 requires such acquisitions to be measured only at fair value under Ind AS 113

Explanation

Appendix 1 notes that paragraph B33D refers to the accounting in Appendix C of Ind AS 103 for such common-control acquisitions, which IFRS 11 does not cover because IFRS 3 does not deal with common-control combinations. The other options deny this reference or invent restrictions.

Did you get it right without looking?

One question tells you little. A timed set on Ind AS 111 Joint Arrangements shows your real accuracy, how long you take and where you lose marks.

Practise Ind AS 111 Joint ArrangementsFree diagnostic mock

More Ind AS 111 Joint Arrangements questions