IAS 28 – NBC Institute

FR- MAY 2021 – L2 – Q5d – Significant Influence Factors

Identify five factors indicative of significant influence as per IAS 28.

Question

IAS 28: Investment in Associates and Joint Ventures defines an associate as an entity over which an investor has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but not in control or joint control of those policies. Significant influence is presumed to exist where the investor entity holds more than 20% (but not more than 50%) of the voting power of the investee entity. In assessing significant influence, all facts and circumstances are assessed, including the term of exercise of potential voting rights and any other contractual arrangements.

Identify FIVE (5) factors that are indicative of significant influence.

Answer

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Tags: Corporate Governance, Factors, IAS 28, Investment in Associates, Significant influence
Level: Level 2

Topic: Professional and Ethical Issues in Financial Reporting
Series: MAY 2021

FR – Nov 2021 – L2 – Q5d – Group Financial Statements and Consolidation

Discuss the factors that determine whether an investment in another company constitutes an associate status.

Question

Discuss the matters to consider in determining whether an investment in another company constitutes an associate status.

Answer

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Tags: IAS 28, Investment in Associates, Significant influence, Tags: Associate Status
Level: Level 2

Topic: Group Financial Statements and Consolidation
Series: NOV 2021

FR – March 2024 – L2 – Q5d – Financial Reporting Standards and Their Applications

Identify factors that indicate significant influence under IAS 28.

Question

Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

Required:
Outline FIVE (5) factors/conditions that indicate significant influence (other than shareholding).
(5 marks)

Answer

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Tags: Associates, Equity Method, Financial Reporting, IAS 28, Significant influence
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: MAR 2024

CR – July 2023 – L3 – Q2a – Associates and joint ventures

Classify the investment, advise on derecognition of assets, and explain the treatment of cryptocurrency under relevant IFRS standards.

Question

Digital Ghana Ltd has agreed to work with Pixel Ghana Ltd in order to develop a new musical platform for the Ghana Musician Association. On 31 December 2021, the companies established a new entity called Flowbeat Ltd with equal shareholdings and share in profit. Digital Ghana Ltd has contributed its own intellectual property in the form of employee expertise, cryptocurrency with a carrying amount of GH¢6 million, which now has a fair value of GH¢8 million, and an office building with a carrying amount of GH¢12 million with a fair value of GH¢20 million. The cryptocurrency has been recorded at cost in Digital Ghana Ltd.’s financial statements.

Pixel Ghana Ltd has contributed the technology and marketing expertise required for the smooth operations of Flowbeat Ltd. The board of Flowbeat Ltd will comprise of directors appointed equally by Digital Ghana Ltd and Pixel Ghana Ltd. Decisions are made by a unanimous vote.

Required:
In accordance with the provisions of relevant International Financial Reporting Standards:

i) Advise on the classification of the investment which Digital Ghana Ltd has in Flowbeat Ltd.
(3 marks)

ii) Advise on the derecognition of the assets exchanged for the investment in Flowbeat Ltd and any resulting gain/loss on disposal in the financial statements of Digital Ghana Ltd at 31 December 2021.
(2 marks)

iii) Advise whether the cryptocurrency should be classified as a financial asset or an intangible asset.
(2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cryptocurrency, Derecognition, Financial Asset, IAS 28, IFRS 11, Intangible Asset, Joint Venture
Level: Level 3

Topic: Associates and joint ventures
Series: JULY 2023

FR- MAY 2021 – L2 – Q5d – Significant Influence Factors

Identify five factors indicative of significant influence as per IAS 28.

Question

IAS 28: Investment in Associates and Joint Ventures defines an associate as an entity over which an investor has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but not in control or joint control of those policies. Significant influence is presumed to exist where the investor entity holds more than 20% (but not more than 50%) of the voting power of the investee entity. In assessing significant influence, all facts and circumstances are assessed, including the term of exercise of potential voting rights and any other contractual arrangements.

Identify FIVE (5) factors that are indicative of significant influence.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Governance, Factors, IAS 28, Investment in Associates, Significant influence
Level: Level 2

Topic: Professional and Ethical Issues in Financial Reporting
Series: MAY 2021

FR – Nov 2021 – L2 – Q5d – Group Financial Statements and Consolidation

Discuss the factors that determine whether an investment in another company constitutes an associate status.

Question

Discuss the matters to consider in determining whether an investment in another company constitutes an associate status.

Answer

Find Related Questions by Tags, levels, etc.

Tags: IAS 28, Investment in Associates, Significant influence, Tags: Associate Status
Level: Level 2

Topic: Group Financial Statements and Consolidation
Series: NOV 2021

FR – March 2024 – L2 – Q5d – Financial Reporting Standards and Their Applications

Identify factors that indicate significant influence under IAS 28.

Question

Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

Required:
Outline FIVE (5) factors/conditions that indicate significant influence (other than shareholding).
(5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Associates, Equity Method, Financial Reporting, IAS 28, Significant influence
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: MAR 2024

CR – July 2023 – L3 – Q2a – Associates and joint ventures

Classify the investment, advise on derecognition of assets, and explain the treatment of cryptocurrency under relevant IFRS standards.

Question

Required:
In accordance with the provisions of relevant International Financial Reporting Standards:

i) Advise on the classification of the investment which Digital Ghana Ltd has in Flowbeat Ltd.
(3 marks)

iii) Advise whether the cryptocurrency should be classified as a financial asset or an intangible asset.
(2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cryptocurrency, Derecognition, Financial Asset, IAS 28, IFRS 11, Intangible Asset, Joint Venture
Level: Level 3

Topic: Associates and joint ventures
Series: JULY 2023

Question Tag: IAS 28

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FR- MAY 2021 – L2 – Q5d – Significant Influence Factors

Identify five factors indicative of significant influence as per IAS 28.

Identify FIVE (5) factors that are indicative of significant influence.

FR – Nov 2021 – L2 – Q5d – Group Financial Statements and Consolidation

Discuss the factors that determine whether an investment in another company constitutes an associate status.

FR – March 2024 – L2 – Q5d – Financial Reporting Standards and Their Applications

Identify factors that indicate significant influence under IAS 28.

CR – July 2023 – L3 – Q2a – Associates and joint ventures

Classify the investment, advise on derecognition of assets, and explain the treatment of cryptocurrency under relevant IFRS standards.

FR- MAY 2021 – L2 – Q5d – Significant Influence Factors

Identify five factors indicative of significant influence as per IAS 28.

Identify FIVE (5) factors that are indicative of significant influence.

FR – Nov 2021 – L2 – Q5d – Group Financial Statements and Consolidation

Discuss the factors that determine whether an investment in another company constitutes an associate status.

FR – March 2024 – L2 – Q5d – Financial Reporting Standards and Their Applications

Identify factors that indicate significant influence under IAS 28.

CR – July 2023 – L3 – Q2a – Associates and joint ventures

Classify the investment, advise on derecognition of assets, and explain the treatment of cryptocurrency under relevant IFRS standards.

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FR- MAY 2021 – L2 – Q5d – Significant Influence Factors

Identify five factors indicative of significant influence as per IAS 28.

Identify FIVE (5) factors that are indicative of significant influence.

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FR – Nov 2021 – L2 – Q5d – Group Financial Statements and Consolidation

Discuss the factors that determine whether an investment in another company constitutes an associate status.

You're reporting an error for "FR – Nov 2021 – L2 – Q5d – Group Financial Statements and Consolidation"

FR – March 2024 – L2 – Q5d – Financial Reporting Standards and Their Applications

Identify factors that indicate significant influence under IAS 28.

You're reporting an error for "FR – March 2024 – L2 – Q5d – Financial Reporting Standards and Their Applications"

CR – July 2023 – L3 – Q2a – Associates and joint ventures

Classify the investment, advise on derecognition of assets, and explain the treatment of cryptocurrency under relevant IFRS standards.

You're reporting an error for "CR – July 2023 – L3 – Q2a – Associates and joint ventures"

FR- MAY 2021 – L2 – Q5d – Significant Influence Factors

Identify five factors indicative of significant influence as per IAS 28.

Identify FIVE (5) factors that are indicative of significant influence.

You're reporting an error for "FR- MAY 2021 – L2 – Q5d – Significant Influence Factors"

FR – Nov 2021 – L2 – Q5d – Group Financial Statements and Consolidation

Discuss the factors that determine whether an investment in another company constitutes an associate status.

You're reporting an error for "FR – Nov 2021 – L2 – Q5d – Group Financial Statements and Consolidation"

FR – March 2024 – L2 – Q5d – Financial Reporting Standards and Their Applications

Identify factors that indicate significant influence under IAS 28.

You're reporting an error for "FR – March 2024 – L2 – Q5d – Financial Reporting Standards and Their Applications"

CR – July 2023 – L3 – Q2a – Associates and joint ventures

Classify the investment, advise on derecognition of assets, and explain the treatment of cryptocurrency under relevant IFRS standards.

You're reporting an error for "CR – July 2023 – L3 – Q2a – Associates and joint ventures"

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