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

Under the equity method in Ind AS 28, the investor's profit or loss and other comprehensive income include respectively:

The investor's profit or loss includes its share of the investee's profit or loss, and the investor's other comprehensive income includes its share of the investee's other comprehensive income. It is a proportionate share, not the whole amount or just dividends.

  1. ADividends received from the investee, and nothing in OCI
  2. BThe investee's entire profit or loss, and the investee's entire OCI
  3. CThe investor's share of the investee's profit or loss, and the investor's share of the investee's other comprehensive incomeCorrect
  4. DThe investee's profit or loss shared equally, and no OCI share

Explanation

Ind AS 28 states that the investor's profit or loss includes its share of the investee's profit or loss, and the investor's OCI includes its share of the investee's OCI. Including the entire amounts is line-by-line consolidation, not the equity method. Dividends alone are the cost-method approach.

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