Which of these usually evidences significant influence?
APaying the investee's audit fee
BHolding only trade receivables
CBoard representation in the investee
DOwning the investee's office
Answer & Solution
Correct answer: C. Board representation in the investee
Board representation is the first listed indicator of significant influence, along with policy-making participation and managerial interchange.
Keep practising Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures
Browse all Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures questions for CA Final, or explore more Financialreporting topics.
Related questions
Equity accounting is usually applied where the investor holds what share of voting shares?If facts and circumstances change, an entity should:A joint operator recognises in a joint operation:A joint venturer accounts for its interest in a joint venture using:In a joint venture, the parties with joint control have rights to the:A joint arrangement is one in which two or more parties have:A parent that skips consolidation and prepares separate statements must disclose:In a qualifying reorganisation, cost of the new parent's investment is: