The Commentary to AASB 124 Identifies Factors That Would Normally

question 74

Multiple Choice

The commentary to AASB 124 identifies factors that would normally indicate the existence of control.These factors include:

• A) the capacity to withdraw a material amount of loan capital.
• B) the power to dominate the composition of the board of directors or governing body.
• C) the authority to determine the outcome of significant local council decisions relevant to the entity.
• D) the capacity to withdraw a material amount of loan capital and the power to dominate the composition of the board of directors or governing body.

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Definitions:

ACCC

The Australian Competition and Consumer Commission, a regulatory body responsible for enforcing laws to prevent unfair market practices and protect consumer rights.

Market Power

The ability of a company or entity to influence the price and output levels in the market.

Customers' Preferences

The tastes, preferences, or choices of consumers regarding products or services which can impact market demand and influence business strategies.

Pricing Strategies

Methods used by companies to price their products or services, aiming to maximize profits while meeting consumer demand and competition.