IFRS 10 Consolidated Financial Statements sets out how to determine whether one entity has control over another entity. Which of the following statements is in accordance with either the IFRS 10 definition of control or with the guidance prescribed to help identify whether control exists over another entity? a. The investor must be represented on the board of directors or governing body of the other entity. b. The investor must have greater than 50 per cent of the voting rights in the other entity. c. The investor must be the only party that receives variable returns from the other entity. d. The investor must have existing rights that give it the current ability to direct relevant activities of the other entity.
IFRS 10 Consolidated Financial Statements sets out how to determine whether one entity has control over another entity. Which of the following statements is in accordance with either the IFRS 10 definition of control or with the guidance prescribed to help identify whether control exists over another entity? a. The investor must be represented on the board of directors or governing body of the other entity. b. The investor must have greater than 50 per cent of the voting rights in the other entity. c. The investor must be the only party that receives variable returns from the other entity. d. The investor must have existing rights that give it the current ability to direct relevant activities of the other entity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
IFRS 10 Consolidated Financial Statements sets out how to determine whether one entity has control over another entity.
Which of the following statements is in accordance with either the IFRS 10 definition of control or with the guidance prescribed to help identify whether control exists over another entity?
a. The investor must be represented on the board of directors or governing body of the other entity.
b. The investor must have greater than 50 per cent of the voting rights in the other entity.
c. The investor must be the only party that receives variable returns from the other entity.
d. The investor must have existing rights that give it the current ability to direct relevant activities of the other entity.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education