Question1 (15 marks):

It is common for groups of companies to combine in the pursuit of common goals. During the semester we looked at the accounting for equity interests in other entities. With reference to the relevant accounting standards (AASB 3, AASB 10, AASB 11, AASB 128...), discuss the various degrees of influence over an investee. In answering the question, discuss the required accounting treatment under these circumstances.