CAF-6 · Chapter 10 · Question 2 of 15
Significant influence is generally presumed to exist if the investor holds, directly or indirectly, what percentage of the voting power of the investee?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 20% or more
Explanation
IAS 28 states that if an investor holds 20% or more of the voting power, it is presumed to have significant influence, unless it can be clearly demonstrated otherwise.
More Associates (IAS 28) MCQs
- Q4Under the 'Equity Method', the investment is initially recognized at:
- Q5When the associate pays a 'Dividend' to the investor, how is it recorded under the Equity Method?
- Q6Which of the following is NOT an indicator of Significant Influence?
- Q7In the Consolidated Statement of Profit or Loss, the investor's share of the associate's profit is shown as:
- Q8If an investor's share of 'Losses' of an associate equals or exceeds its interest in the associate, the investor: