The commentary to AASB 124 identifies factors that would normally indicate the existence of control.These factors include:
A) the capacity to withdraw a material amount of loan capital.
B) the power to dominate the composition of the board of directors or governing body.
C) the authority to determine the outcome of significant local council decisions relevant to the entity.
D) the capacity to withdraw a material amount of loan capital and the power to dominate the composition of the board of directors or governing body.

Question

Quizplus · Accepted Answer

The power to dominate the composition of the board of directors or governing body is a factor that would normally indicate the existence of control according to AASB 124, as it directly impacts decision-making and strategic direction of the entity.

The Commentary to AASB 124 Identifies Factors That Would Normally