AASB 10 identifies a number of factors that may indicate the existence of control.These include:
A) the ability to appoint the CEO of another entity.
B) the power to dominate the composition of the board of directors or governing body of another entity.
C) the power to require another entity to purchase goods and services from an entity that results in a benefit to the controlling entity.
D) the ability to appoint the CEO of another entity and the power to dominate the composition of the board of directors or governing body of another entity.

Question

Quizplus · Accepted Answer

AASB 10 identifies control as having power over the investee, exposure or rights to variable returns, and the ability to use power to affect returns. Dominating the board composition is a clear indicator of control.

AASB 10 Identifies a Number of Factors That May Indicate