The Factors That Are Taken into Consideration in Determining Whether

question 14

Multiple Choice

The factors that are taken into consideration in determining whether or not an entity should be consolidated under AASB 127 include:

• A) The nature of the legal form of the entity and whether or not the 'parent' entity owns enough of the equity in the entity to effectively control the benefits that flow from the relationship with the other entity.
• B) Whether or not the potential 'parent' entity controls the other entity.
• C) The number of members on the board under the control of the potential 'parent' entity, and whether or not the other entity has been partitioned by the potential 'parent' entity.
• D) Whether or not the potential 'parent' entity controls the other entity and whether or not it is in a significantly different business to the potential 'parent'.
• E) None of the given answers.