1. Which statement is incorrect regarding identification of associates?

a. A holding of 20% or more of the voting power (directly or through subsidiaries) will
indicate significant influence unless it can be clearly demonstrated otherwise
b. If the holding is less than 20%, the investor will be presumed not to have significant
influence unless such influence can be clearly demonstrated
c. Potential voting rights are a factor to be considered in deciding whether significant
influence exists
d. A substantial or majority ownership by another investor precludes an investor from
having significant influence

2. An investor need not use the equity method if all of the following four conditions are met,
except

a. The investor is itself a wholly-owned subsidiary, or is a partially-owned subsidiary of

another entity and its other owners, including those not otherwise entitled to vote, have
been informed about, and do not object to, the investor not applying the equity method
b. The investor’s debt or equity instruments are not traded in public market
c. The investor filed its financial statements with a securities commission for the purpose
of issuing any class of instruments in a public market
d. The ultimate or any intermediate parent of the investor produces consolidated financial
statements available for public use that comply with PFRSs

3. When an investment in an associate or a joint venture is held by, or is held indirectly through
an entity that is a venture capital organization, or a mutual fund, unit trust and similar
entities including investment-linked insurance funds, the entity

a. Shall account for its investment in an associate or a joint venture using equity method
b. Shall measure investments in those associates and joint ventures at fair value through
profit or loss in accordance with PFRS 9
c. May elect to measure investments in those associates and joint ventures at fair value
through profit and loss in accordance with PFRS 9
d. May elect to measure investments in those associates and joint ventures at fair value
through OCI in accordance with PFRS 9