1. According to AASB 128, the main evidence of significant influence, through an investors power to participate in policy setting, could be:

A. actual participation in policy making. B. any or all conditions in this list. C. representation on the associates governing body. D. material transactions between investors and associate

10. Which of the following statements is correct? A. Under AASB3 a partnership cannot be a member of a corporate group. B. A subsidiary cannot use Weighted Average Cost to measure its inventory if the parent uses a different inventory method. C. After it is taken over by a parent, a subsidiary must revalue all its financial statement items to fair value. D. Companies that are jointly controlled by two or more other companies do not report under AASB3, Business Combinations.

11. Assets of Argus Ltd include a plot of land purchased in 20X0 for $260 000. On 31 December 20X2 Argus became a subsidiary of Cyclops Ltd. The lands fair value at the following dates:

31 December 20X2 $250,000

31 December 20X3 $270,000

31 December 20X6 $290,000

31 December 20X8 $360,000

Argus Ltd Applies the cost model. What is the correct consolidation data adjustment entry for 31 December 20X8?

A. Accounts Debit $ Credit $ Land 100,000 Asset revaluation reserve 100,000

B. Accounts Debit $ Credit $ Land 100,000 Fair value reserve 100,000

C. Accounts Debit $ Credit $ Land 110,000 Fair value reserve 110,000

D. Accounts Debit $ Credit $ Land 100,000 Fair value reserve 10,000 Asset revaluation reserve 110,000