According to IFRS 10 Consolidated Financial Statements, Which of the Following

question 9

Multiple Choice

According to IFRS 10 Consolidated Financial Statements, 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:

Money Demand Curve

A graphical representation showing the relationship between the quantity of money demanded by an economy and the interest rate.

Real Exchange Rate

The exchange rate between two currencies adjusted for their respective countries' price levels, reflecting the purchasing power of one currency in terms of another.

Potential GDP

The maximum total level of output an economy can produce without increasing inflation in the long term.

Money Demand Curve

A graphical representation showing the relationship between the quantity of money people want to hold and the interest rate, at a given point in time.