Which of the following is closest to IFRS 3 Business Combinations definition of control? A company is deemed to have control over another only when it owns a majority of the voting shares of another company. B. A company is deemed to have control when it can elect a majority of the Board members of another company. C. Control is the ability to direct the activities of a company that most significantly affect the investor's returns. D. Control exists only when a company has the continuing power to determine the operating and financing policies of another company and attempts to exercise such powers.
Which of the following is closest to IFRS 3 Business Combinations definition of control? A company is deemed to have control over another only when it owns a majority of the voting shares of another company. B. A company is deemed to have control when it can elect a majority of the Board members of another company. C. Control is the ability to direct the activities of a company that most significantly affect the investor's returns. D. Control exists only when a company has the continuing power to determine the operating and financing policies of another company and attempts to exercise such powers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Which of the following is closest to IFRS 3 Business Combinations definition of control?
A company is deemed to have control over another only when it owns a majority of the voting shares of another company.
B. A company is deemed to have control when it can elect a majority of the Board members of another company.
C. Control is the ability to direct the activities of a company that most significantly affect the investor's returns.
D. Control exists only when a company has the continuing power to determine the operating and financing policies of another company and attempts to exercise such powers.
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