IFRS Defines Control As

question 32

Multiple Choice

IFRS defines control as:

• A) the direct or indirect ability to determine the direction of management and policies through ownership, contract, or otherwise.
• B) the power to govern the entity's financial and operating policies as to obtain benefits from its activities.
• C) the power to direct the activities that impact economic performance, the obligation to absorb expected losses, and the right to receive expected residual returns.
• D) having a majority of the ownership interests entitled to elect management.

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Definitions:

Dividend Per Share

The total dividends declared by a corporation divided by the number of outstanding shares, indicating how much each share receives in dividends.

Stock Split

A corporation's decision to divide its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Market Price

The prevailing cost at which a service or asset is offered for sale or purchase in the open market.

Stock Split

involves dividing a company's existing stock into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.