Reference no: EM132623602

Problem 1: According to AASB 10/IFRS 10 Consolidated Financial Statements, which of the following factors indicate the existence of control?

I. Ownership of more than 50% of the voting rights in another entity.

II. Shared power in the governance of financial and operating policies of another entity so as to obtain benefits.

III. Possessing existing rights that give the current ability to direct the relevant activities of another entity.

IV. The power to have significant influence over the operating policies of an entity so as to obtain benefits.

a) I, II and IV only.

b) II only.

c) II and IV only.

d) I and III only.

Problem 2: When evaluating whether an asset has been impaired, the carrying amount of the asset must be compared to its recoverable amount. Recoverable amount is the higher of:

a) value in use: and, original cost.

b) fair value less costs to sell: and, value in use.

c) original cost: and, net present value.

d) initial cost: and, fair value.