CIMAPRA19-F01-1 Exam - Topic 2 Question 32 Discussion

Question

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

Felicidad · Accepted Answer

A) 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.

Felicidad · Answer

B) 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.

Felicidad · Answer

C) Entity C owns 45% of another entity's equity shares and can exercise significant influence over that entity's financial and operating policy decisions.

Felicidad · Answer

D) Entity D owns 25% of another entity's equity shares and associated voting rights and 100% of its preference shares.