CAF-6 · Chapter 10 · Question 6 of 15
Which of the following is NOT an indicator of Significant Influence?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Having the power to govern the financial and operating policies of the investee.
Explanation
Power to 'govern' or 'direct' suggests control (subsidiary) rather than just significant influence (associate).
More Associates (IAS 28) MCQs
- Q8If an investor's share of 'Losses' of an associate equals or exceeds its interest in the associate, the investor:
- Q9If an investor sells goods to its associate (downstream transaction) and some goods remain in the associate's inventory, the unrealized…
- Q10In the Statement of Financial Position, an investment in an associate is classified as a:
- Q11The 'Carrying Amount' of an associate at the reporting date is calculated as:
- Q12Which of the following is NOT required for the application of the equity method?