Asked by
Mahdi Mofazali
on Nov 30, 2024
Verified
Control of a subsidiary must be actively exercised (i.e.,the capacity to control does not meet the definition of control).
Capacity To Control
Refers to the ability of an entity to direct the financial and operating policies of another entity so as to benefit from its activities.
- Understand the association between exerting control and the requirement to generate consolidated financial reports, specifically focusing on the consequences of relinquishing control over a subsidiary.
Verified Answer
JB
Learning Objectives
- Understand the association between exerting control and the requirement to generate consolidated financial reports, specifically focusing on the consequences of relinquishing control over a subsidiary.