Significant Influence Is Defined in IAS 24 As

question 35

Multiple Choice

Significant influence is defined in IAS 24 as:

• A)a majority ownership relationship such that the parent entity is able to dominate the decision making of the other entity.
• B)the exercised ability to materially affect the financial and operational decisions of another entity.
• C)the influence that is attached to owning a parcel of shares or other equity instruments of another entity.
• D)the power to participate in the financial and operating policy decisions of an entity, but not the control over those policies.

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Definitions:

Commercial Transactions

Business activities that involve the exchange of goods, services, or funds between enterprises or individuals.

Unusual Signature

A signature that deviates significantly from a person's usual style of signing, which can raise questions about authenticity or indicate special circumstances.

Marketability

The ease with which an asset or service can be sold or bought in the market, often because of demand, availability, or regulatory conditions.

Instrument

An instrument is a formal legal document, such as a contract, will, or security, that gives evidence or details of a transaction or legal act.