According to AASB 12/IFRS 12 Disclosure of Interests in Other Entities, an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity is known as a:
A) controlling entity.
B) structured entity.
C) dominant entity.
D) rights entity.

Question

Quizplus · Accepted Answer

As per AASB 12/IFRS 12, an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity is known as a structured entity. This type of entity may include special purpose vehicles, trusts, or other off-balance sheet arrangements.