Which of the following statements is CORRECT?

Question

Quizplus · Accepted Answer

According to International Accounting Standard (IAS) 28, 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." An ownership interest of between 20% and 50% generally gives rise to a presumption of significant influence, but significant influence can still exist with an ownership interest of less than 20% based on factors such as representation on the board of directors, participation in policy-making processes, and material intercompany transactions. Thus, option D is correct, and options A, B, and C are incorrect.

Which of the Following Statements Is CORRECT