AASB 128 Requires That Where an Investor Company Does Significantly

question 36

Multiple Choice

AASB 128 requires that where an investor company does significantly influence an investee:

• A) The investee company must revalue its assets to fair value and disclose all related party transactions.
• B) The investor company must mark the shares to market.
• C) The investee company must provide the investor company with details regarding profits made on inter-company transactions so that they may be eliminated from the group accounts.
• D) The investor company must adopt the equity method of accounting for the investment.
• E) None of the given answers.

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Definitions:

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A compensation strategy that involves giving employees pay increases based on their performance achievements, as an incentive for productivity and excellence.

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A strategic approach to identifying one's career goals and outlining the steps and resources necessary to achieve them.

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