Adele Holdings Ltd shares joint control over a joint arrangement, Sherrin Ltd, with the company's two foundingshareholders. Adele Holdings Ltd accounts for its equity interest in Sherrin Ltd in accordance with IFRS 11 JointArrangements. At a later date, Adele Holdings Ltd obtains control over the business of Sherrin Ltd by purchasingthe remaining interest held by the founding shareholders in Sherrin Ltd. Which of the following statements iscorrect regarding Adele Holdings Ltd's accounting in Sherrin Ltd?a: Adele Holdings Ltd should remeasure its previously held interest in Sherrin Ltd at the acquisition date whetherthe activities of Sherrin Ltd meet the definition of a business or not.O b.Adele Holdings Ltd should not remeasure its previously held interest in Sherrin Ltd at the date of acquisition ofthe remaining interest held by the founding shareholders.C. Adele Holdings Ltd may determine whether it shall remeasure its previously held interest in Sherrin Ltd at its choicein accord with its accounting policy.d. Adele Holdings Ltd should not remeasure its previously held interest in Sherrin Ltd, as the re-measurementrequirements relating to the previously held interest do not apply to joint arrangements.

A joint arrangement is a that type of business formation which has been started by the parties…

Answered: the remaining interest held by the…

the remaining interest held by the founding shareholders in Sherrin Ltd. Which of the following statements is correct regarding Adele Holdings Ltď's accounting in Sherrin Ltd?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 26P

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