Can a corporate entity still follow settlement date accounting?

Since cash method of accounting is not allowed for a corporate entity in India, can a corporate entity following Ind AS still follow settlement date accounting? Is there any conflict here?

As per Ind AS 109, a regular way purchase or sale of financial assets shall be recognised, as applicable, using trade date accounting or settlement date accounting.

However, the entity should apply the same method consistently for all purchases and sales of financial assets that are classified in the same way as per the accounting standard. Assets that are mandatorily measured at a fair value through profit or loss form a separate classification from assets designated as measure at fair value through profit or loss. Investments in equity instruments accounted for using the fair value option (FVO) form another separate classification.

When an entity follows settlement date accounting, accounting standard ensures that the fair value changes of such an asset is also recognised in the books of accounts with the effect that the net result of following settlement date accounting would tantamount to following accrual basis of accounting. This is because when settlement date accounting is applied an entity accounts for any change in the fair value of the asset to be received during the period between the trade date and the settlement date in the same way as it accounts for the acquired asset. In other words, the change in value is not recognised for assets measured at amortised cost; it is recognised in profit or loss for assets classified as financial assets measured at fair value through profit or loss; and it is recognised in other comprehensive income for financial assets measured at fair value through other comprehensive income.

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