IFRS Defines Control As

question 32

Multiple Choice

IFRS defines control as:

• A) the direct or indirect ability to determine the direction of management and policies through ownership, contract, or otherwise.
• B) the power to govern the entity's financial and operating policies as to obtain benefits from its activities.
• C) the power to direct the activities that impact economic performance, the obligation to absorb expected losses, and the right to receive expected residual returns.
• D) having a majority of the ownership interests entitled to elect management.

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Definitions:

Face Amount

The face amount is the nominal or dollar value printed on a financial instrument like a bond or insurance policy, representing the amount due at maturity or the coverage amount.

Bond Redemption

A financial term referring to the process of repaying the principal amount of a bond at its maturity date.

Market Value

Market value refers to the price at which an asset would trade in a competitive auction setting.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.