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:

Investment

Allocation of resources, usually money, in the expectation of generating an income or profit.

Available-for-sale Debt Portfolio

A categorization of debt investments not classified as held-to-maturity or trading securities, which can be sold prior to maturity.

Unrealized Loss

A financial situation where an investment holds a lower market value than its purchasing price, yet the investor has not actually sold it to incur a realized loss.

Amortized Cost

The initial investment cost adjusted for amortization or depreciation over the period of the investment.