AASB 127 Defines Control As

question 26

Multiple Choice

AASB 127 defines control as:

• A) Governing the financial, operating and sustainability policies of an entity so as to benefit from its activities.
• B) The capacity of an entity to dominate the decision-making of another entity by virtue of a majority shareholding or controlling ownership interest in some form.
• C) The capacity and willingness to direct the decision-making of another entity with respect to its financial and operating policies to improve the performance and position of the controlling entity.
• D) The power to govern the financial and operating policies of an entity so as to benefit from its activities.
• E) None of the given answers.

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Definitions:

Hold Back

The act of withholding part of a payment or benefit until certain conditions are met or to exert control or influence over a situation.

Bona Fide Purchaser

A person who buys something in good faith without notice of any previous claim or lien against the property.

Good Title

A rightful or legitimate claim to the ownership of property or legal recognition of the ownership of property.