Where an Entity Controls Another Entity but Holds Less Than

question 22

Multiple Choice

Where an entity controls another entity but holds less than half of the other entity's voting rights, AASB 12/IFRS 12 Disclosure of Interests in Other Entities, requires which of the following disclosures be made?

• A) The reasons why the ownership of the investee does not constitute control.
• B) The nature of the relationship between the investor and investee.
• C) The significant judgements and assumptions it has made in determining the nature of the interest in the other entity.
• D) The amount of any repayments of borrowings between the investor and investee during the period.

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Definitions:

Polypeptide Chain

A series of amino acids linked together by peptide bonds, forming part of or the whole primary structure of a protein.

mRNA

Messenger RNA, a type of RNA that carries genetic information from DNA to the ribosome, where it serves as a template for protein synthesis.

Ribosome

A cellular organelle composed of RNA and proteins, found throughout the cytoplasm in cells, which is involved in decoding the mRNA to produce proteins.

Nucleic Acid Bases

The parts of DNA and RNA molecules that carry genetic information, specifically adenine, thymine (in DNA), cytosine, guanine, and uracil (in RNA).