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CA Final · Financial Reporting · Ind AS 111 Joint Arrangements

IFRS 11 does not deal with acquisitions of joint operation interests under common control, whereas Ind AS 111 does through a reference to Ind AS 103 Appendix C. What is the stated reason for IFRS 11 not covering this?

IFRS 11 scopes out this matter because IFRS 3 Business Combinations does not deal with business combinations under common control. Ind AS 103 has Appendix C for such combinations, so Ind AS 111 can cross-refer to it.

  1. AIFRS 3 does not deal with business combinations under common controlCorrect
  2. BIFRS 11 prohibits joint operations among group entities
  3. CIFRS 9 requires such interests to be measured at fair value
  4. DIFRS 10 treats such arrangements as subsidiaries automatically

Explanation

The comparison note says IFRS 11 scopes out the matter because IFRS 3, Business Combinations, does not deal with business combinations under common control. Ind AS 103 has Appendix C covering them, so Ind AS 111 can refer to it. The other options invent reasons not found in the comparison.

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