Which of the following may provide evidence of significant influence even if the percentage of ownership interest is less than 20\% ? Representation on the board of directors or equivalent governing body of the investee Participation in policy-making processesincluding participation in decisions about dividends or other

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

See similar textbooks

Related questions

Q: Which of the following is NOT a dimension of corporate governance: Select one: a. Suppliers…

A: Corporate Governance Corporate governance is a structure or a system of organization's rules,…

Q: Finance Who do shareholders elect to monitor and enforce shareholder interests of a firm? Group of…

A: Shareholders are the owners of a corporation.The shareholders elect the board of directors. The duty…

Q: Which of the following is NOT a corporate governance best practice? Question 8 options: Public…

A: Answer of Question 8: Public company directors should hold meaningful amounts of stock as long as…

Q: Which of the following audit procedures would not likely be performed for audits of shareholders’…

A: Audit procedures for auditing shareholder’s equity mainly include the number of authorized, issued…

Q: Which of the following is typically a motivation for listing shares overseas Select one: a. To…

A: Cross listing can be defined as a scenario wherein a company's common shares are listed on a foreign…

Q: Regardless of the legal agreements, technology licensing, and the like between two companies,…

A: Any of the circumstances stated below is regarded as proof of strong significant influence: Board…

Q: ccording to PAS 28, Which of the following will not fall under the situation of “existence of…

A: Financial Policy is those policies which help the investor to invest in the fair manner according to…

Q: The statement of changes in shareholders' equity is: Question 4 options: a required…

A: "We'll answer the first question since the exact one wasn't specified. Please submit a new question…

Q: Under IFRS 10, parent corporation is the entity that controls one or more entities. How does IFRS 10…

A: Under IFRS 10 ,Control exists when the investor has power, exposure to variable returns and the…

Q: Identify the wrong statement about Shareholders and their impact to corporate objectives: a. The…

A: Shareholders of a company are the owners of the company, they share profit and losses of the…

Q: State 5 ways in which a company might utilise its share premiums

A: Hi Student Since there are multiple questions,we will answer only first question. If you want…

Q: Which of the following is NOT a characteristic of an ordinary share? a) The dividends are at the…

A: Ordinary share is a common stock which gives ownership of the company.

Q: .theory would deduce that corporate growth causes an increase in shareholder remittance .

A: The answer to this part is (d) Positive Accounting

Q: (i) Which one of the following is not a right of a shareholder? A. To receive a dividend declared by…

A: 1) Following are right of a shareholder-

Q: It has become common for companies to offer their shareholders a choice between a cash dividend and…

A: Scrip dividend: The word scrip dividend denotes to the process of providing stockholders with the…

Q: One of the essential elements of control is power. According to PFRS 10, an investor has power if

A: PFRS: control requires exposure or right to variable returns and the ability to affect those returns…

Q: When is the financial information a faithful representation? Multiple Choice If it allows management…

Q: The owners of company stock are ________. Group of answer choices A. quantitative factors B.…

A: Balance score card: Balance score card is a performance matrix that shows the organizations…

Q: You are auditing a company that owns 22% of the voting common stock of another corporation and uses…

A: Equity method: Equity method refers to a type of accounting used for investment between companies.…

Q: Governance issues include the following except; Select one: a. Disclosure and transparency b. Role…

A: The term Governance refers to process which is designed to ensure the following quality in the…

Q: Which one of the following roles are NOT typical of the lead underwriter in an IPO Marketing the…

A: A lead underwriter are usually an investment bank or another financial organization.

Q: Which of the following is closest to IFRS 3 Business Combinations definition of control? A company…

A: In accordance with IFRS 3, the Definition of “control” An investor controls an investee when the…

Q: 2. What business risks does P&G face that may threaten its ability to satisfy…

A: The P&G faces numerous business risks that are described in the annual report. Apart from annual…

Q: All of the following statements are correct, except, An investor may have significant influence…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: ompanies that are owned by a group of investors, who could also be associated with the company's…

A: As per the policy of Bartleby we are bound to give the answer of first question only. Meaning of…

Q: Question 1 (i) Which of the following statement is more apprpriate concering a two tier board? A.…

A: The two-tier model comprises of supervisory board and management board. It is also known as Dual…

Q: ____ determines the ultimate distribution of the firm’s earnings between reinvestment and cash…

A: Q30: Dividend policy determines the ultimate distribution of the firm’s earnings between…

Q: 3. Present a general evaluation of the IPO process corporations. in a Explain the process:…

A: 3. a) Stages in IPO process Appointment of an Underwriter or Investment Bank. Registration of the…

Q: When a corporation’s earnings and dividends are exemplary good, which type of preference shares will…

A: Preference Shares- These shares are issued by the entity and the holders of these shares get a fixed…

Q: escribe some mechanisms that are used to solve the stockholder/bondholder agency conflict and the…

A: Agency problem means conflict between the stockholders and the management . There are three type of…

Q: The existence of significant influence by an investor is usually evidenced in one or more of the…

A: SOLUTION- EXPLANATION- THE EXISTENCE OF SIGNIFICANT INFLUENCE BY AN INVESTOR USUALLY EVIDENCED IN…

Q: Which of the following options is most useful to the financial statement analyst? Select one: a. The…

A: Financial analysis is the process of assessing the performance and suitability of firms, projects,…

Q: corporators

A: Stockholders are individuals, firms, or institutions that usually invest money in a company or…

Q: Select the assumption, principle or constraint that most appropriately justifies these procedures…

A: The accounting principle represents the rules and guidelines that are needed to be followed by the…

Q: When an investor owns 20% to 50% of the voting stock of an investee company, the investor is…

A: When an investor owns 20% to 50% of the voting stock of an investee company, the investor is…

Q: Share options granted by a corporation are recorded as expense on the number of options that a…

A: Solution Note : dear student as per the Q&A guideline we are required to answer the first…

Question

Which of the following may provide evidence of significant influence even if the percentage of ownership interest is less than 20\% ? Representation on the board of directors or equivalent governing body of the investee Participation in policy-making processesincluding participation in decisions about dividends or other distributions transactions between the investor and the investee IV Interchange of managenal personnel V. Provision of essential technical information.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

which one is correct answer? Q30: ____ determines the ultimate distribution of the firm’s earnings between reinvestment and cash dividend payment to shareholders. a. Financial expertise b. Board of Directors’ agreements c. Dividend policy d. Management efficiency
Choose the correct.Which of the following does not indicate an investor company’s ability to significantly influence an investee?a. Material intra-entity transactions.b. The investor owns 30 percent of the investee but another owner holds the remaining 70 percent.c. Interchange of personnel.d. Technological dependency.
When financal statements are used by shareholders and irwestors to evaluate the performance of a company's top execuoves it is referred to as the function of financial reports. Minde Choice proxy tectrical. Semedsho frimineteal
If a publicly traded company is trying to maximize its perceived value to decision makers external to the corporation, the company is most likely to report too small a valuefor which of the following on its balance sheet?a. Assetsb. Liabilitiesc. Retained Earningsd. Common Stock
provide a financial analysis of a publicly-traded corporation including an explenation of the key financail ratios and thier impact on the deciosn-making of financail manager
Under IFRS 10, parent corporation is the entity that controls one or more entities. How does IFRS 10 define control? Choose the best answer A. An investor controls an investee when it owns more than 50% of all the outstanding capital stocks, whether common or preferred. B. An investor controls an investee when it has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. C. An investor controls an investee when it has the ability to influence the financial and operating policies of an entity so as to obtain benefits from its activities. D. An investor controls an investee when it is exposed, or has the right to variable return from the investment with the investee and has the ability to affect those returns through the power over the investee.
Please answer all 3 subparts Question 1 (i) Which one of the following is not a right of a shareholder?A. To receive a dividend declared by the companyB. To attend and vote a meetingsC. To receive the company's accountsD. To manage company affairs (ii) From which theoretical perspective would disclosure and transparency be best explained?A. Managerial hegemony theoryB. Stakeholder theoryC. Resource dependence theoryD. Agency theory (iii) Which of the following will NOT be a likely ground to blow the whistle?A. When there are serious breaches of company rules and regulationsB. When somebody feels personally aggrievedC. When there are threats to human safetyD. When there are serious concerns about a possible fraud
Which of the following is closest to IFRS 3 Business Combinations definition of control? A company is deemed to have control over another only when it owns a majority of the voting shares of another company. B. A company is deemed to have control when it can elect a majority of the Board members of another company. C. Control is the ability to direct the activities of a company that most significantly affect the investor's returns. D. Control exists only when a company has the continuing power to determine the operating and financing policies of another company and attempts to exercise such powers.
Which of the following is typically a motivation for listing shares overseas Select one:a. To reduce issuance costsb. Excess liquidity in the home marketc. To avoid activist investors or institutional investorsd. To signal corporate governance quality
Which of the following statements is consistent with the principle of control as defined by IFRS 10 Consolidated Financial Statements? a. The investor must be exposed to a return from the investee. b. The investor has the ability to use its power over the investee to affect the amount of the returns from the investee. c. An investor yet to direct the relevant activities of an investee has no power over the investee. d. An investor cannot have control over an investee if another investor has existing rights to participate in the direction of the relevant activities.
Choose the incorrect statement below: A. Retained earnings are the funds contributed by shareholders in excess of par or stated value.B. Equity is defined as the residual interest in the assets of an entity after deducting all of the liabilities.C. Conversion of preference shares into ordinary shares directly affects retained earnings.D. The statement of changes in equity is a formal statement that shows the movements in the elements or components of the shareholders' equity.
‏.......theory would deduce that corporate growth causes an increase in shareholder remittance . Select one : a . Agency Theory b . Normative Accounting c . None of the other Points d . Positive Accounting