AASB 127 Defines Control As

question 26

Multiple Choice

AASB 127 defines control as:

• A) Governing the financial, operating and sustainability policies of an entity so as to benefit from its activities.
• B) The capacity of an entity to dominate the decision-making of another entity by virtue of a majority shareholding or controlling ownership interest in some form.
• C) The capacity and willingness to direct the decision-making of another entity with respect to its financial and operating policies to improve the performance and position of the controlling entity.
• D) The power to govern the financial and operating policies of an entity so as to benefit from its activities.
• E) None of the given answers.

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Definitions:

Cost Approach

An evaluation method that estimates the value of an asset based on the cost to replace or reproduce it.

Ethical Companies

Businesses that operate in ways that are considered morally right, adhering to principles of fairness, honesty, and respect for people and the planet.

Recoups All Costs

A situation where the total expenses of an investment or project are fully recovered.

Competitive Bidding

Competitive bidding is a procurement process where several suppliers submit bids to win a contract, offering the best terms in terms of price, quality, and service.