Which of the following equity instruments would be considered to be ordinary shares for the purposes of AASB 133 Ordinary shares that receive a dividend at the discretion of the ownership group or its representatives Ordinary shares that receive a dividend at the discretion of the ownership group or its representatives and preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate Preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate Ordinary shares that have the right to a cumulative fixed rate of dividends Question 2 AASB 124 defines control as the exercise of power to direct the decision making of another entity in relation to financial and operational decisions so as to enable the controlling entity to benefit as a result the potential ability to obtain desired outcomes through another entity by influence through representatives on the governing board of the other entity the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities the capacity to influence the financial and operational decision making of another entity through the board of directors so as to achieve the co operation of the other entity in obtaining the ends of the controlling entity Reasons for the requirement to disclose related party transactions include key stakeholders of the entity include related parties who should be kept informed of their transactions the risk that the performance and position of the reporting entity will be negatively affected by the transactions the risk that the performance and position of the reporting entity will be negatively affected by the transactions and related party transactions may be used to minimise total taxation payable by a group of related entities they may be used to minimise total taxation payable by a group of related entities

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Posted on Oct 01, 2024

Which of the following equity instruments would be considered to be ordinary shares for the purposes of AASB 133? Ordinary shares that receive a dividend

Which of the following equity instruments would be considered to be ordinary shares for the purposes of AASB 133?

Ordinary shares that receive a dividend at the discretion of the ownership group or its representatives.

Ordinary shares that receive a dividend at the discretion of the ownership group or its representatives and preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate.

Preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate.

Ordinary shares that have the right to a cumulative fixed rate of dividends.

Question 2

AASB 124 defines control as:

		the exercise of power to direct the decision making of another entity in relation to financial and operational decisions so as to enable the controlling entity to benefit as a result.
		the potential ability to obtain desired outcomes through another entity by influence through representatives on the governing board of the other entity.
		the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
		the capacity to influence the financial and operational decision making of another entity through the board of directors so as to achieve the co-operation of the other entity in obtaining the ends of the controlling entity.

Reasons for the requirement to disclose related-party transactions include:

		key stakeholders of the entity include related parties who should be kept informed of their transactions.
		the risk that the performance and position of the reporting entity will be negatively affected by the transactions.
		the risk that the performance and position of the reporting entity will be negatively affected by the transactions and related-party transactions may be used to minimise total taxation payable by a group of related entities.
		they may be used to minimise total taxation payable by a group of related entities.