Q2- Chapter 13 & Chapter 14

An associate is an entity over which the investor exercises significant influence without achieving control

• True

• False

Significant influence is not presumed over associates where the investor holds 20% or more of the voting rights

• True

• False

An associate is a part of the group

• True

• False

Which accounting standard governs the accounting for investments in associates within consolidated financial statements

• IAS 27

• IAS 26

• IAS 28

IAS 27 is to be applied when accounting for investments in associates in the investor's separate financial statements

• True

• False

Associate: An entity over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture

• True

• False

The subsidiary disposed of should be included in the subsequent consolidated statement of financial position

• True

• False

In the consolidated statement of changes in equity, the non-controlling interest in a disposed subsidiary should be not removed upon disposal

• Ture

• False

A joint arrangement that is not structured through a separate entity is always a joint operation

• True

• False

Joint ventures are separate legal entities, so they should prepare their own financial statements

• False

• True