Regarding Significant Influence with Respect to an Associate, Which of the Following

question 15

Multiple Choice

Regarding significant influence with respect to an associate, which of the following statements is TRUE?

• A)The investor-associate relationship is directly opposite in nature compared to that existing between a parent and subsidiary.
• B)There is a requirement for the investor to hold shares, or have a beneficial interest, in the associate.
• C)The cost method is used to account for investments in associates under IFRS.
• D)If significant influence is exercised by one company over another by virtue of an association or contract other than from the holding of shares, then the equity method cannot be applied in relation to the associate.

---

Definitions:

Academic Journal

A professional publication that presents original research, reviews, or scholarly articles in a specific academic field.

Unwanted Effect

An undesirable or harmful outcome resulting from an action or medication.

Negative Therapy Effect

An adverse outcome in psychotherapy where the patient's symptoms worsen instead of improving.

Biopsychosocial Approach

A holistic perspective for understanding human health and illness that integrates biological, psychological, and social factors.