Exam 26: Consolidation: Controlled Entities

According to AASB 10/IFRS 10 Consolidated Financial Statements, which of the following factors indicate the existence of control? I. Ownership of more than 50\% of the voting rights in another entity. II. Shared power in the governance of financial and operating policies of another entity so as to obtain benefits. III. Possessing existing rights that give the current ability to direct the relevant activities of another entity. IV. The power to have significant influence over the operating policies of an entity so as to obtain benefits.

When deciding whether or not one entity controls another entity:

In the context of control, examples of relevant activities include:

North Bank has lent Sophie Limited $600 000. Part of the loan contract prevents Sophie from borrowing money in the future from other banks without the permission of North. As a result of this relationship:

Protective rights include:

For the purposes of consolidated financial statements, a group consists of:

Which of the following is not one of the three elements of control according to AASB 10/IFRS 10 Consolidated Financial Statements?

According to AASB 10/IFRS 10 Consolidated Financial Statements, all parent entities are required to present consolidated statements unless which of the following conditions apply to them? I. The parent is a wholly owned subsidiary. II. The parent's debt or equity securities are traded in a public market. III. The parent is a partly owned subsidiary and its other owners do not object to the non-presentation of consolidated financial statements. IV. The parent is not in the process of applying to issue any securities in a public market.

In determining the existence of power, together with size of the investor's voting interest, the following factors need to be examined in relation to the holders of the other shares in the investee:

In a consolidated group of entities, control over the subsidiaries in the group:

The consolidated financial statements reflect the effects of transactions:

The entity that is represented by a single set of consolidated financial statements is the:

Summer Company is a listed public company and has a 60% controlling interest in Winter Company. Winter Company is the parent of Starlight Company. In which of the following situations will Winter Company not be required to prepare consolidated financial statements?

The equity in a subsidiary that is not attributable to a parent is known as a/an:

Rights to variable returns from an investee include:

A group may:

An agent is:

In the context of control, relevant activities are:

A subsidiary is an entity that:

Where the financial statements of a subsidiary are prepared at a date differing from that of the parent, the group must disclose: