Significant influence – 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 – May 2018 – L3 – Q1b – Consolidated Financial Statements

Calculate the consolidated gain or loss on disposal of a 60% equity interest and explain accounting for the remaining investment.

Question

On 30 June 2016, Afoko Ltd acquired a 100% interest in Anyidohu Ltd, a public limited company, for a cash consideration of GH¢195 million. Anyidohu’s identifiable net assets were fair valued at GH¢160 million. On 30 November 2017, Afoko disposed of 60% of the equity of Anyidohu when its identifiable net assets were GH¢180 million. Of the increase in net assets, GH¢15 million had been reported in profit or loss, and GH¢5 million had been reported in other comprehensive income as a gain on an available-for-sale financial asset. The sale proceeds were GH¢115 million, and the remaining equity interest was fair-valued at GH¢65 million. Afoko could still exert significant influence after the disposal of the interest.

Required:
Calculate the consolidated gain or loss arising on the disposal of the equity interest in Anyidohu Ltd and explain how the investment in Anyidohu Ltd is accounted for after the disposal of 60% of equity.

Answer

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Tags: Disposal of subsidiary, Financial instruments, Goodwill, IFRS, Significant influence
Level: Level 3

Topic: Consolidated Financial Statements
Series: MAY 2018

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 – May 2018 – L3 – Q1b – Consolidated Financial Statements

Calculate the consolidated gain or loss on disposal of a 60% equity interest and explain accounting for the remaining investment.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Disposal of subsidiary, Financial instruments, Goodwill, IFRS, Significant influence
Level: Level 3

Topic: Consolidated Financial Statements
Series: MAY 2018

Question Tag: Significant influence

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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 – May 2018 – L3 – Q1b – Consolidated Financial Statements

Calculate the consolidated gain or loss on disposal of a 60% equity interest and explain accounting for the remaining investment.

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 – May 2018 – L3 – Q1b – Consolidated Financial Statements

Calculate the consolidated gain or loss on disposal of a 60% equity interest and explain accounting for the remaining investment.

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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.

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 – May 2018 – L3 – Q1b – Consolidated Financial Statements

Calculate the consolidated gain or loss on disposal of a 60% equity interest and explain accounting for the remaining investment.

You're reporting an error for "CR – May 2018 – L3 – Q1b – Consolidated Financial Statements"

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 – May 2018 – L3 – Q1b – Consolidated Financial Statements

Calculate the consolidated gain or loss on disposal of a 60% equity interest and explain accounting for the remaining investment.

You're reporting an error for "CR – May 2018 – L3 – Q1b – Consolidated Financial Statements"

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