Significant Influence Is Defined in AASB 128 As

question 27

Multiple Choice

Significant influence is defined in AASB 128 as:

• A) The demonstrated ability of an entity to impact substantially both the financial and operating policies of another entity.
• B) The power of an entity to participate in the financial and operating policies of the investee, but it is not control or joint control.
• C) The demonstrated ability of an entity to affect substantially or control either the financial or operating policies of another entity.
• D) The capacity or demonstrated ability of an entity to impact substantially or control the operations of another entity.
• E) None of the given answers.

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Definitions:

Power Differences

The disparities in control, authority, or influence among individuals or groups in a social or organizational context.

Leisure Time

Free time spent away from business, work, job hunting, domestic chores, and education, as well as necessary activities such as eating and sleeping.

Heterosexual Couples

Partners of the opposite sex in a romantic or sexual relationship.

Multigenerational Households

Homes in which more than two generations of family members live together.