Which of the following statements is CORRECT?

Question

Quizplus · Accepted Answer

Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Ownership interest between 20% and 50% is presumed to give significant influence, but it may not always be the case. Similarly, an ownership interest between 0 and 10% can imply significant influence if the Investor has board representation or some other contractual arrangement with the Associate. Therefore, significant influence can still exist if the Investor owns less than 20% of the voting shares of the Associate. Control, on the other hand, requires ownership of more than 50% of the voting shares.

Which of the Following Statements Is CORRECT