Which of the Following Statements Is in Accordance with AASB

question 49

Multiple Choice

Which of the following statements is in accordance with AASB 131 "Interests in Joint Ventures"?

• A) Investors in jointly controlled entities account for their investment under equity method if their ownership percentage exceeds 20%.
• B) The existence of a contractual arrangement distinguishes interests in joint ventures from investments in associates in which the investor has significant influence.
• C) The contractual arrangement establishes joint control over the joint venture in such a way no single venturer is in a position to control the activity unilaterally.
• D) Activities that have no contractual arrangement to establish joint control but in substance have established joint control are considered joint ventures for the purposes of AASB 131.
• E) None of the given answers.

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Definitions:

Major Organic Product

The leading compound created at the maximum yield in reactions involving organic substances.

Intramolecular

Refers to reactions or interactions occurring within a single molecule.

Diels-Alder

A chemical reaction between a conjugated diene and a substituted alkene (dienophile) to form a cyclohexene derivative; a fundamental reaction in organic synthesis.

Dienophile

A compound that is attracted to dienes and reacts with them in Diels-Alder reactions, typically characterized by having an electron-deficient double or triple bond.