QUESTION: 101

HOTSPOT (Drag and Drop is not supported)
Corporate governance is the means by which an entity is operated and

See Explanation section for answer.

Answer(s): A

Explanation:

WX is considering an investment in ST.
At 31 December 20X2 ST had the following balances in its statement of financial position:

Which of the following would cause ST to become an associate investment of WX?

WX purchases 15,000 of ST's $1 equity shares and 20,000 of ST's $1 preference shares.
WX purchases 25,000 of ST's $1 equity shares.
WX purchases 75,000 of ST's $1 equity shares.
WX purchases 50,000 of ST's $1 preference shares.

Answer(s): B

Reveal Solution Next Question

QUESTION: 103

Which of the following would be classified as a parent and subsidiary relationship in accordance with IFRS 10 Consolidated Financial Statements?

Entity A owns 30% of another entity's equity shares and has the power to appoint or remove the majority of the members of the board of directors and control of the entity is through that board.
Entity B owns 20% of another entity's equity shares and has an agreement with other equity shareholders of that entity that gives it power over a further 20% of the equity voting rights.
Entity C owns 45% of another entity's equity shares and can exercise significant influence over that entity's financial and operating policy decisions.
Entity D owns 25% of another entity's equity shares and associated voting rights and 100% of its preference shares.

Answer(s): A

Reveal Solution Next Question

QUESTION: 104

Which of the following is a condition that has to be met for an entity to be exempt the requirement to prepare consolidated financial statements?

The parent entity's debt or equity instruments are not traded in a public market.
The parent entity's equity instruments are only traded in one country.
The parent's equity has a nominal value of less than $1 million.
The parent's net asset value is less than $1 million.

Answer(s): A

Reveal Solution Next Question

Free F1 Financial Reporting Exam Braindumps (page: 26)

QUESTION: 101

Explanation:

QUESTION: 102

QUESTION: 103

QUESTION: 104