Under IAS 27,how Is "Control" Defined

question 44

Multiple Choice

Under IAS 27,how is "control" defined?

• A)ownership of 50% of more of the voting shares of another entity
• B)representation on another entity's board of directors
• C)the power to govern financial and operating policies of an entity
• D)ownership of 30% or more of the voting shares of another entity

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset over its useful life, reducing its initial cost to its current book value.

Book Value

The value of an asset as recorded on a company's balance sheet, calculated as its cost minus accumulated depreciation.

Adjusting Entry

An accounting journal entry made to update the accounts and reflect the correct financial position before financial statements are prepared.

Liability Account

An account on the balance sheet that represents obligations to pay debts or amounts owing to lenders, suppliers, employees, or other creditors.