According to IFRS 10, Which of the Following Factors Indicate

question 12

Multiple Choice

According to IFRS 10, which of the following factors indicate the existence of control? I. Possessing existing rights that give the current ability to direct the relevant activities.
II) Shared power in the governance of financial and operating policies of another entity so as to obtain benefits.
III) The power to govern the operating policies of an entity so as to obtain benefits.
IV) Ownership of more than 50% of the voting power in the subsidiary.

• A) I, II and III only;
• B) I and IV only;
• C) II and IV only;
• D) IV only.

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Definitions:

Market Price

The present cost at which a good or service is available for purchase or sale.

Transfer Price

The price at which goods and services are transferred between departments or subsidiaries of the same company, often used for accounting and tax purposes.

Market Price Approach

A valuation method that estimates the price of an asset based on the current market prices of similar assets.

Decentralization

The distribution of decision-making authority to lower levels in an organization, allowing for more localized and faster decision processes.