In AASB 3, the indicators of an acquiring entity’s power to control the other combining entities in a business combination include the power to:Exercise more than half of the voting rights in another entity through the site of the voting power or by virtue of an agreement with other investors.Appoint or remove a majority of the members of the governing body of the acquired entities.Cast the majority of votes at meetings of the governing body.Submit a shareholder proposal to the management team for consideration.Which of the following is correct: a. i and ii b. ii and iv c. i, ii and iii d. i,ii, iii and iv

Which of the following is not one of the three elements of control according to AASB 10 Consolidated Financial Statements?Group of answer choicesThe ability to use power over the investee to affect the amount of the investor’s returns.Dominating the decision making of the investee.Power over the investee.Exposure, or rights, to variable returns from involvement with the investee.

According to AASB 10 Consolidated Financial Statements, which of the following factors indicate the existence of control?I.       Possessing existing rights that give the current ability to direct the relevant activities.II.      Shared power in the governance of financial and operating policies of another entity so as to obtain benefits.III.    The power to have significant influence over the operating policies of an entity so as to obtain benefits.IV.    Ownership of more than 50% of the voting rights in the subsidiary.Group of answer choices

AASB 3 requires all the net assets of the parent to be at fair value at the date of acquisition.Group of answer choices

As a general rule, the power to enter into a management contract requires the approval by the majority vote of the board of directors or trustees and the affirmative vote by the stockholders owning 2/3 of the outstanding capital stock or 2/3 of the members of both corporations.Group of answer choicesTrueFalse

In a typical merger or acquisition deal, which of the following parties has the ultimate authority to make the final decision on whether to accept the M&A offer? A. The CEO of the acquiring company B. The shareholders of the target company C. The board of directors of the acquiring company D. The board of directors of the target company