The definition of control adopted in AASB 124 relies on the power to:
A) agree.
B) govern.
C) vote.
D) manage.

Question

Quizplus · Accepted Answer

AASB 124 defines control as the power to govern financial and operating policies of an entity in order to obtain benefits from its activities. Therefore, the best choice is B, which refers to the power to govern. While the other options (agree, vote, and manage) may also involve some level of control, they do not capture the full essence of what is meant by control in the accounting context.

The Definition of Control Adopted in AASB 124 Relies on the Power