Which of the Following Theories Views Non-Controlling Interest and the Controlling

question 55

Multiple Choice

Which of the following theories views non-controlling interest and the controlling shareholders as being two distinct shareholder groups?

• A)The Ownership Theory.
• B)The Entity Theory.
• C)The Proprietary Theory.
• D)The Parent Theory.

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Definitions:

Revenue Recognition

The accounting principle that outlines the specific conditions under which revenue is recognized and dictates how it should be measured and reported in the financial statements.

Disclosures

Information provided in financial statements and notes that gives insight into the basis of preparation and specific accounting policies, significant judgments, and potential risks.

IAS 1

International Accounting Standard 1, which outlines the presentation of financial statements, aiming for comparability, transparency, and fairness in financial reporting.