AASB 10 Identifies a Number of Factors That May Indicate

question 26

Multiple Choice

AASB 10 identifies a number of factors that may indicate the existence of control.These include:

• A) the ability to appoint the CEO of another entity.
• B) the power to dominate the composition of the board of directors or governing body of another entity.
• C) the power to require another entity to purchase goods and services from an entity that results in a benefit to the controlling entity.
• D) the ability to appoint the CEO of another entity and the power to dominate the composition of the board of directors or governing body of another entity.

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Definitions:

Federal Law

Laws that have been enacted by the national government of a country and which apply to the entire nation, superseding local or state laws where conflicts occur.

International Commerce

Refers to the exchange of goods, services, and capital across international borders or territories.

Certificate of Limited Partnership

A legal document filed with a state governmental body that officially recognizes a limited partnership's existence.

Capital Contributions

Monetary or non-monetary assets provided by partners or shareholders to increase the capital of a partnership or corporation.