Significant Influence Is Defined in AASB 128 As

question 19

Multiple Choice

Significant influence is defined in AASB 128 as:

• A) the demonstrated ability of an entity to affect substantially both the financial and operating policies of another entity.
• B) the power of an entity to participate in the financial and operating policies of the investee, but it is not control or joint control.
• C) the demonstrated ability of an entity to affect substantially or control either the financial or operating policies of another entity.
• D) the capacity or demonstrated ability of an entity to impact substantially or control the operations of another entity.

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Definitions:

VMPL

Stands for the Value of Marginal Product of Labor, which is the additional revenue a firm earns by employing one more unit of labor.

Profit

The financial gain obtained when revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Factor Demand Curve

The relationship between the price of a factor of production and the quantity of that factor that is demanded, holding all else constant.

Final Product

A good or service that is consumed by the end-user and does not require further processing or transformation.