Define Significant Influence and Identify the Factors in AASB 128

question 8

Essay

Define significant influence and identify the factors in AASB 128 that may establish the existence of significant influence.

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Definitions:

Market Price

The price at this moment for buying or selling an asset or service.

Cash Acquisition

The purchasing of a company or asset with immediate payment in full in cash, instead of using financing options or issuing shares.

Synergy Value

The additional value created by combining two companies, resulting from efficiencies or growth opportunities not available to either company individually.

Cash Acquisition

A method of purchasing a company or asset where the buyer uses cash as the form of payment rather than stocks or other forms of payment.