Where an Entity Controls Another Entity but Holds Less Than

question 10

Multiple Choice

Where an entity controls another entity but holds less than half of the other entity's voting rights,AASB 12 Disclosure of Interests in Other Entities,requires which of the following disclosures 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:

Monetary Damages

Monetary damages are a sum of money awarded as compensation to a plaintiff for losses or injuries suffered due to the defendant's actions.

Strict Liability

A legal doctrine holding parties responsible for damages or harm caused by their actions, regardless of fault or intent.

Defenses

Legal strategies and arguments put forward in order to defeat or mitigate claims in litigation.

Restatement Third

A set of legal principles in the United States that organizes, clarifies, and suggests improvements for tort, agency, trusts, property, restitution, suretyship, and other areas of the law.