If an Investor Entity Owns More Than Half of the Voting

question 27

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, IFRS 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:

Regret

Involves feeling sorry for one’s misfortunes, limitations, losses, transgressions, shortcomings, or mistakes.

Anger

An emotional response to a real or imagined threat or provocation

Suicide Note

A suicide note is a message left by an individual who intends to take their own life, often explaining the reasons behind the decision or expressing last thoughts to loved ones.

Control Over Events

The extent to which individuals believe they have power over outcomes and events in their lives, a concept often related to locus of control.