According to paragraph 9 of AASB 12/IFRS 12 Disclosure of Interests in Other Entities, which of the following is an example of a situation where it is necessary to disclose significant judgements and assumptions in relation to subsidiaries?
A) where an entity is an agent or a principal.
B) where an entity controls another entity but it holds less than half of the voting rights of the other entity.
C) where an entity does not control another entity but it holds more than half of the voting rights in the other entity.
D) all of the options are correct.

Question

Quizplus · Accepted Answer

Paragraph 9 of AASB 12/IFRS 12 requires disclosure of significant judgements and assumptions in situations including determining whether an entity is an agent or a principal, whether it controls another entity with less than half of the voting rights, and whether it does not control another entity despite holding more than half of the voting rights. These scenarios involve complex judgements about the nature of control and influence, making transparency about these judgements critical for understanding the financial statements.

According to Paragraph 9 of AASB 12/IFRS 12 Disclosure of Interests