Investment in a subsidiary held for sale and the applicability of Ind AS 110 under the Ind AS framework

In our view the Committee rightly puts substance over form. Calling the returns ‘fixed’ does not take them outside paragraph B56 – they carry default and credit risk, as the write-offs of the SPV receivables show. With a 100% shareholding and the MoP powers the control criteria are clearly met, and a short-term intention to transfer does not revive an exemption IFRS 10 deliberately withdrew. Consolidation may add little where standalone and consolidated figures are identical, but that cannot displace the control model: the SPVs should be consolidated and, where the held-for-sale criteria are met, presented under Ind AS 105.