Skip to content

CMA Final · Corporate Financial Reporting · Consolidated Financial Statements and Separate Financial Statements

Ind AS 28 deals with how an investment in an associate or a joint venture is accounted for in the investor's separate financial statements. It directs that this be done:

Paragraph 44 of Ind AS 28 requires that an investment in an associate or joint venture in separate financial statements be accounted for in accordance with paragraph 10 of Ind AS 27. It does not require the equity method or proportionate consolidation there.

  1. ABy the equity method in every case
  2. BIn accordance with paragraph 10 of Ind AS 27Correct
  3. CBy proportionate consolidation of the investee's assets and liabilities
  4. DOnly by writing off the investment to the statement of profit and loss

Explanation

Paragraph 44 of Ind AS 28 says an investment in an associate or joint venture is accounted for in the entity's separate financial statements in accordance with paragraph 10 of Ind AS 27. It does not mandate the equity method or proportionate consolidation for separate statements. Writing off is not prescribed.

Did you get it right without looking?

One question tells you little. A timed set on Consolidated Financial Statements and Separate Financial Statements shows your real accuracy, how long you take and where you lose marks.

Practise Consolidated Financial Statements and Separate Financial StatementsFree diagnostic mock

More Consolidated Financial Statements and Separate Financial Statements questions