According to AASB 10 Consolidated Financial Statements, the following factors indicate the existence of control:
$$\begin{array} { | l | l | }
\hline \text { I. } & \begin{array} { l }
\text { The power to govern the financial policies of an entity so as to obtain } \
\text { benefits. }
\end{array} \
\hline \text { II. } & \begin{array} { l }
\text { Shared power in the govemance of financial and operating policies of } \
\text { another entity so as to obtain benefits. }
\end{array} \
\hline \text { III. } & \begin{array} { l }
\text { The power to goven the operating policies of an entity so as to obtain } \
\text { benefits. }
\end{array} \
\hline \text { IV. } & \text { Ownership of more than } 50 \% \text { of the voting power in the subsidiary. } \
\hline
\end{array}$$
A) I, II and III only
B) I, III and IV only
C) II and IV only
D) IV only.

Question

According to AASB 10 Consolidated Financial Statements, the following factors indicate the existence of control:
$$\begin{array} { | l | l | } 
\hline \text { I. } & \begin{array} { l } 
\text { The power to govern the financial policies of an entity so as to obtain } \
\text { benefits. }
\end{array} \
\hline \text { II. } & \begin{array} { l } 
\text { Shared power in the govemance of financial and operating policies of } \
\text { another entity so as to obtain benefits. }
\end{array} \
\hline \text { III. } & \begin{array} { l } 
\text { The power to goven the operating policies of an entity so as to obtain } \
\text { benefits. }
\end{array} \
\hline \text { IV. } & \text { Ownership of more than } 50 \% \text { of the voting power in the subsidiary. } \
\hline
\end{array}$$
A) I, II and III only
B) I, III and IV only
C) II and IV only
D) IV only.

Quizplus · Accepted Answer

AASB 10 defines control as having power over the investee, exposure or rights to variable returns, and the ability to use power to affect returns. I, III, and IV align with these criteria.

According to AASB 10 Consolidated Financial Statements, the Following Factors