The Holding of 20% or More of the Voting Power

question 1

Multiple Choice

The holding of 20% or more of the voting power in an investee entity by an investor is a presumptive test that the investee is an associate of the investor.The application of this presumptive test means that:

• A) Where an investor acquires a 20% equity stakeholding in an investee the investee is an associate of the investor.
• B) Where an investor acquires a 20% equity stakeholding in an investee, in the absence of evidence to the contrary, the investee will be treated as an associate of the investor.
• C) An investor must have an equity stakeholding in an investee of at least 20% before the investee can be treated as an associate of the investor.
• D) None of the above.