If an Investor Entity Owns More Than Half of the Voting

question 22

Multiple Choice

If an investor entity owns more than half of the voting or potential voting power of an investee and does not account for the investment as a subsidiary,AASB 12 Disclosure of Interests in Other Parties,requires that the following disclosure be made:

• A)the reasons why the ownership of the investee does not constitute control
• B)the nature of the relationship between the investor and investee
• C)the significant judgements and assumptions it has made in determining the nature of the interest in the other entity
• D)the amount of any repayments of borrowings between the investor and investee during the period.

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Definitions:

Expectancy Theory

A motivational theory suggesting that an individual's motivation is influenced by their expectation of the outcome and the attractiveness of that outcome.

Goal Theory

A psychological framework that seeks to understand how setting goals affects behavior and performance, emphasizing the importance of establishing challenging and specific goals.

Best Practices

Established professional procedures that are considered most effective.

Expectancy Theory

A motivational theory suggesting that individuals are likely to act in ways based on the expected outcomes of their actions.