Entity A owns 25% of the voting rights inEntity B. However, Entity A has norepresentation on the board of directors ofEntity B. Which of the following statementsis correct? *Entity A cannot be presumed to havesignificant influence over Entity B becauseEntity A does not have boardrepresentation.Entity A is presumed to have significationinfluence over Entity B because it holds25% or more of the voting rights in Entity B.Entity A is presumed to have significationinfluence over Entity B because it holds20% or more of the voting rights in Entity B.Representation on an investee's board ofdirectors is never considered whendetermining the existence of significantinfluence.

The meaning of significant influence has been defined under IAS 28, if an entity holds 20% or more…

Entity A owns 25% of the voting rights in Entity B. However, Entity A has no representation on the board of directors of Entity B. Which of the following statements is correct? * Entity A cannot be presumed to have significant influence over Entity B because Entity A does not have board representation. Entity A is presumed to have signification O influence over Entity B because it holds 25% or more of the voting rights in Entity B. Entity A is presumed to have signification O influence over Entity B because it holds 20% or more of the voting rights in Entity B. Representation on an investee's board of directors is never considered when determining the existence of significant influence.

Entity A owns 25% of the voting rights in Entity B. However, Entity A has no representation on the board of directors of Entity B. Which of the following statements is correct? * Entity A cannot be presumed to have significant influence over Entity B because Entity A does not have board representation. Entity A is presumed to have signification O influence over Entity B because it holds 25% or more of the voting rights in Entity B. Entity A is presumed to have signification O influence over Entity B because it holds 20% or more of the voting rights in Entity B. Representation on an investee's board of directors is never considered when determining the existence of significant influence.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Does James have income, gain or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss. What is James’s basis in TOBY, INC. stock? Does Jenna have income, gain, or loss on the transaction in which she receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss.
Please indicate True or False: Subchapter S corp is a pass through entity.____________________. Subchapter S corp can have voting and nonvoting common stock.______________ Appreciated property distributions from Sub S corp are never taxable to shareholders. ___________ Partnerships can be eligible S corp shareholders.______________ S corps file Form 1120S tax returns._____________________
A non-stock corporation was created and operated by Ana, Bena, Carla, Dolly,and Erica. After 10 years of operation, Ana, Bena, Carla, and Dolly surrenderedtheir shares to Erica. Erica became the sole owner of the Corporation. Ericawants to convert the Corporation into a ONE PERSON CORPORATION. Is Ericaallowed by law to convert the corporation to ONE PERSON CORPORATION?Yes or No? Explain.
The first step in forming a sole proprietorship is filing out the appropriate paperwork and paying the necessary filing fees with the secretary of state in the state where the business will operate. True false S corporations and closed corporations' earnings are exempt from federal and state income taxes based on a commitment to reinvest in local communities. True false
Jan is the sole shareholder of Jan Ltd. Summer is the sole shareholder of SKY Co. Both of the companies are CCPCs. Jan and Summer will amalgamate their corporations as per Section 87(1) on July 21st, forming JS Ltd. Jan's shares in Jan Ltd. have an ACB of $1,000 and a fair market value of $24,500. Summer's shares in SKY Co. have an ACB of $1,500 and a fair market value of $45,500. Which of the following will apply with respect to the planned amalgamation? Multiple Choice The ACB of Jan's and Summer's shares in JS Ltd. will be $24,500 and $45,500, respectively. JS Ltd.'s first taxation year will commence on July 22nd
A bylaw of Betma Corporation provides that no share- holder can sell his shares unless he first offers them for sale to the corporation or its directors. The bylaw also states that this restriction shall be printed or stamped upon each stock certificate and shall bind all present or future owners or holders. Betma Corporation did not comply with this latter provision. Shaw, having knowledge of the bylaw restriction, nevertheless purchased twenty shares of the corporation’s stock from Rice, without having Rice first offer them for sale to the corporation or its directors. When Betma Corporation refused to effectuate a transfer of the shares to her, Shaw sued to compel a transfer and the issuance of a new certificate to her. What result?
X, Inc. is negotiating with Y, Inc. to acquire 100% of X, Inc.'s share capital. X, Inc. is currently owned by Y, Inc. and meets the definition of business defined in IFRS 3. The sale of shares is subject to approval by X, Inc.'s shareholders and the government. Because the agreement takes time, prior to the sale of shares, X, Inc and Y, Inc entered into an agreement that: Both parties settle it legally with the consent of the necessary agreements; Determine the purchase price; Determined that the following decisions and actions may be taken by Y, Inc. only with X, Inc's approval until the sale of shares, through: o Changes in the management of Z, Inc; o Dividend payment; and, o New project contracts that exceed IDR 200 billion. Does X, Inc control Z, Inc as a result of this agreement?
Sam owns 50 Class A non-voting shares of ABC Co. Leslie owns 50 Class B voting shares of ABC Co. Who has control of ABC Co? A) Sam B) Both Sam and Leslie C) Leslie D) Neither Sam nor Leslie Odinie has been an employee of ABC Co for the last 5 years. Recently, the CFO has asked all employees to incorporate and advised that their pay will now be received through their corporation instead. Odinie is a Canadian resident individual and is interested in what type of corporation his new company will be. It is established in Canada. A) Specified investment business B) Public corporation C) Personal services business D) Other corporation
A VIE has three equity holders, Equity Holder 1 owns 20% of the C/S. Equity holder 2 owns 30% of the C/S and equity holder 3 owns 50% of the C/S. Each of the equity holders has 2 votes on a 6-person board. The board makes all decisions affecting the VIE’s policies and practices. Determine which party, if any, is the primary beneficiary and explain briefly why.