Under IAS 27,how is "control" defined?
A)ownership of 50% of more of the voting shares of another entity
B)representation on another entity's board of directors
C)the power to govern financial and operating policies of an entity
D)ownership of 30% or more of the voting shares of another entity

Question

Quizplus · Accepted Answer

According to IAS 27, "control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities". Therefore, option C is the correct definition of control, and options A and D do not fully reflect this definition. Option B is also not a correct definition of control under IAS 27.

Under IAS 27,how Is "Control" Defined