IAS 24 Defines Control As

question 6

Multiple Choice

IAS 24 defines control as:

• A)the exercise of power to direct the decision making of another entity in relation to financial and operational decisions so as to enable the controlling entity to benefit as a result.
• B)the capacity to influence the financial and operational decision making of another entity through the board of directors so as to achieve the co-operation of the other entity in obtaining the ends of the controlling entity.
• C)the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
• D)the potential ability to obtain desired outcomes through another entity by influence through representatives on the governing board of the other entity.

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Definitions:

Accumulated Depreciation

represents the total amount of depreciation expense that has been recorded for an asset since it was acquired.

Cost Of Goods Purchased

The amount a company spends to buy or produce the products it sells to customers, excluding operating expenses.

Cost Of Goods Sold

Signifies the immediate expenses related to the manufacturing of products that a company sells.