Ifrs 10 Consolidatd financial statements sets out the requirements for the consolidation of entities under the control of the reporting entity. In which of the follwing scenarios is control deemed to exist according to IFRS10? i) The reporting entity owns 40% of the voting equity in Mafuta Ltd. and has the right to appoint six directors to the board of ten. II) the Reporting entity owns 60% of the voting equity in Maziwa ltd and appoints only four directors to the board of ten. a) both i and ii b) i only c) ii only d) neither i or ii
Ifrs 10 Consolidatd financial statements sets out the requirements for the consolidation of entities under the control of the reporting entity. In which of the follwing scenarios is control deemed to exist according to IFRS10?
i) The reporting entity owns 40% of the voting equity in Mafuta Ltd. and has the right to appoint six directors to the board of ten.
II) the Reporting entity owns 60% of the voting equity in Maziwa ltd and appoints only four directors to the board of ten.
a) both i and ii
b) i only
c) ii only
d) neither i or ii
Financial records known as consolidated financial statements show the assets, liabilities, equity, revenue, expenses, and cash flows of a parent company and its subsidiaries as if they were one economic unit. The guidelines for the creation and presentation of consolidated financial statements are outlined in IFRS 10 Consolidated Financial Statements, which mandates that organizations combine entities they control.
Step by step
Solved in 2 steps
