According to AASB 127,control also exists when the parent owns half or less of the voting power of an entity when there is:
A)power over more than half of the voting rights by virtue of an agreement with other investors
B)power to govern the financial and operating policies of the entity under a statue or agreement
C)power to cast the majority of votes at meetings of the board of directors and control of the entity is by that board
D)all of the above

Question

Quizplus · Accepted Answer

All of the options listed in A, B, and C provide examples of situations where the parent company may have control over an entity, even if they own less than half of the voting power. Therefore, the best choice is D.

According to AASB 127,control Also Exists When the Parent Owns