AASB 127 Defines Control As

question 4

Multiple Choice

AASB 127 defines control as:

• A)the power to participate in the financial and operating policies of an entity so as to obtain benefits from its activities
• B)the power to govern financial and operating policies of an entity so as to obtain benefits from its activities
• C)the power to govern the financial but not the operating policies of an entity so as to obtain benefits from its activities
• D)the power to have significant influence over the financial and operating policies of an entity so as to obtain benefits from its activities

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Definitions:

Callable

A financial term referring to a security that can be redeemed or "called" by the issuer before its maturity date.

Serial Bonds

Bonds issued under a single series where each bond matures at a different date, allowing the issuer to spread out repayment over time.

Staggered Maturity Dates

A strategy involving financial instruments or liabilities that have various maturity dates spread out over time to reduce risk and improve liquidity.

Coupon Bond

A debt security that pays the bondholder a fixed interest rate (coupon) periodically until the bond's maturity date, at which point the principal amount is repaid.