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CA Final · Financial Reporting · Ind AS 111 Joint Arrangements

Orchid Power Ltd's accountant makes four comments on the Ind AS 111 text. Which comment is consistent with the Standard?

The correct comment is that transitional provisions are placed in Ind AS 101 and not in Ind AS 111, while Ind AS 111 retains IFRS 11 paragraph numbers for consistency. The effective-date paragraph is omitted because the date is notified under the Companies Act.

  1. AParagraphs C1A and C1AA on transitional provisions are included in Ind AS 111 itself
  2. BParagraph C1 on the effective date is included because it is relevant to Ind AS 111
  3. CTransitional provisions are included in Ind AS 101 instead, while paragraph numbers of IFRS 11 are retained in Ind AS 111Correct
  4. DA joint arrangement can be neither a joint operation nor a joint venture

Explanation

Appendix 1 states that C1 (effective date) is not included as the date is notified under the Companies Act, and C1A and C1AA are not included because transitional provisions are in Ind AS 101. Paragraph numbers are retained to stay consistent with IFRS 11. The other comments contradict this, or contradict paragraph 6, under which a joint arrangement is either a joint operation or a joint venture.

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