One of the essential elements of control is power. According to PFRS 10, an investor has power if
One of the essential elements of control is power. According to PFRS 10, an investor has power if
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
One of the essential elements of control is power. According to PFRS 10, an
investor has power if
A. The investor’s interest in the earnings of the investee is not fixed but rather varies depending on the level of the earnings.
B. The investor has existing rights that give it the current ability to direct the investee’s relevant activities.
C. The investor holds more than half of the outstanding shares of the investee.
D. The investor takes advantage of the fluctuation of price of the stock.
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