Asked by Shalyn Olsen on Jun 12, 2024
Verified
What are the major criticisms of the control criterion applied to the definition of the group?
Control Criterion
A principle or standard used to determine whether one entity has the power to direct the financial and operating policies of another to gain economic benefits.
Major Criticisms
Significant or fundamental objections or points of contention regarding theories, practices, or policies.
- Comprehend the meaning and consequences of group formation, including the decrease or establishment of legal responsibility.
- Acquire knowledge of the conditions and necessities for a business to generate consolidated financial statements.
Verified Answer
ES
Ernestina SorianoJun 15, 2024
Final Answer :
Criticisms of control criterion:
- Lack of clear guidelines as to what constitutes control where there is less than 50% ownership
- Current proposals attempt to clarify this ambiguity.
- Lack of clear guidelines as to what constitutes control where there is less than 50% ownership
- Current proposals attempt to clarify this ambiguity.
Learning Objectives
- Comprehend the meaning and consequences of group formation, including the decrease or establishment of legal responsibility.
- Acquire knowledge of the conditions and necessities for a business to generate consolidated financial statements.
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