AASB 127 defines control as:
A) Governing the financial, operating and sustainability policies of an entity so as to benefit from its activities.
B) The capacity of an entity to dominate the decision-making of another entity by virtue of a majority shareholding or controlling ownership interest in some form.
C) The capacity and willingness to direct the decision-making of another entity with respect to its financial and operating policies to improve the performance and position of the controlling entity.
D) The power to govern the financial and operating policies of an entity so as to benefit from its activities.
E) None of the given answers.

Question

Quizplus · Accepted Answer

AASB 127 defines control as "the power to govern the financial and operating policies of an entity so as to benefit from its activities". Option D reflects this definition most accurately. Option A is incomplete as it does not mention the power to govern. Option B implies control only through majority shareholding or ownership, while option C adds the element of willingness, which is not mentioned in the definition. Option E is incorrect as none of the given answers accurately reflect the definition in AASB 127.

AASB 127 Defines Control As