Skip to content

CA Final · Financial Reporting · Ind AS 111 Joint Arrangements

Delta Ltd is preparing a note on differences between Ind AS 111 and IFRS 11. Which statement about paragraph B33D in Ind AS 111 is correct?

Paragraph B33D refers to Appendix C of Ind AS 103 for acquiring an interest in a joint operation when the parties sharing joint control are under the same ultimate controlling party both before and after the acquisition and that control is not transitory. IFRS 11 scopes this out.

  1. AIt requires acquisitions of joint operation interests to be measured at fair value even under common control
  2. BIt refers to Appendix C of Ind AS 103 for acquiring an interest in a joint operation when the parties sharing joint control are under the same ultimate controlling party both before and after, and the control is not transitoryCorrect
  3. CIt exempts all joint operations from the requirements of Ind AS 103
  4. DIt was deleted in Ind AS 111 as it conflicts with Ind AS 110

Explanation

The comparison with IFRS 11 notes that B33D refers to the accounting in Appendix C of Ind AS 103 for common-control business combinations. This applies when parties sharing joint control, including the acquirer, are under common control of the same ultimate controlling party both before and after, and that control is not transitory. IFRS 11 scopes this out because IFRS 3 does not deal with common control. Option A is therefore wrong.

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