(1) For the purposes of equity accounting, significant influence is regarded as the power of an investor to:

a. dominate the financing decisions of an entity.

b. control the financial and operating policies of an associate.

c. participate in the day-to-day management of a joint venture interest.

d. participate in the financial and operating policy decisions of an investee.

(2) Where there are transactions between the investor and associate that result in an unrealised profit, the investors share of the associates profit is:

a. affected only if the transaction is an upstream one.

b. affected only if the transaction is a downstream one.

c. affected regardless of whether the transaction is an upstream or downstream one.

d. not affected at all regardless of whether the transaction is an upstream or downstream one.

(3) A business combination is defined as:

a. a transaction in which an acquirer obtains control of an acquiree.

b. a transaction in which one entity obtains control of one or more other entities.

c. a transaction or other event in which an acquirer obtains control of one or more businesses.

d. a transaction or other event in which an entity obtains control of one or more businesses.

(4) In a business combination, the acquirer is the party that:

a. sells the acquired entity.

b. obtains control of the other entities.

c. receives the acquisition consideration.

d. concedes control over the acquired entities.

(5) Goodwill is distinguished from other intangible assets due to which of the following characteristic?

a. monetary nature.

b. physical substance.

c. identifiability.

d. separability.

(6) The original and planned investigation undertaken with the prospect of gaining new knowledge is described as:

a. research.

b. exploration.

c. development.

d. investigation.

(7) The two most common valuation measures used in Accounting Standards are:

a. Fair value less costs to sell and carrying amount.

b. Net realisable value and fair value.

c. Value in use and net realisable value.

d. Cost and fair value.

(8) Fair value is determined as:

a. the current exit price.

b. the current entry price.

c. a future entry price.

d. a future exit price.

(9) The market with the greatest volume and level of activity for the asset or liability is defined as the:

a. most active market.

b. current market.

c. principal market.

d. most advantageous market.

(10) Valuation techniques that reflect the amount that would be required currently to replace the service capacity of an asset is an example of:

a. the fair value approach.

b. the income approach.

c. the cost approach.

d. the market approach.