The lack of a direct link between levels of ownership and control (i.e.,the degree of ownership does not,of itself,determine if an entity has control of another):
A) is consistent with the AASB Framework's definition of assets, which relies on control and not legal ownership.
B) is consistent with the AASB Framework's definition of assets, which relies on legal ownership and not control.
C) is consistent with the AASB Framework's definition of equity, which recognises investments in other entities.
D) is consistent with the AASB Framework's definition of equity, which relies on control and not legal ownership.
E) is consistent with the AASB Framework's definition of assets, which identifies share ownership as being unimportant.

Question

Quizplus · Accepted Answer

The AASB Framework's definition of assets relies on control and not legal ownership. Therefore, the lack of a direct link between levels of ownership and control is consistent with this definition.

The Lack of a Direct Link Between Levels of Ownership