Unless there is evidence to the contrary,an investor owning 25 percent of the stock of an investee is assumed to have significant influence.

Question

Quizplus · Accepted Answer

According to International Accounting Standards (IAS) 28, an investor owning 20-50 percent of the voting rights of an investee is presumed to have significant influence unless there is evidence to the contrary. Therefore, an investor owning 25 percent of the stock of an investee is assumed to have significant influence.

Unless There Is Evidence to the Contrary,an Investor Owning 25