The following statements refer to a situation where an investing entity K seeks to exert control or influence over another entity L. Assume that K is required to prepare consolidated accounts because of other investments.
(a) If K owns more than 20%, but less than 50% of the equity shares in L, then L is bound to be an associate of K.
(b) If K controls the operating and financial policies of L, then L cannot be an associate of K.
(c) If L is an associate of K, then any amounts payable by L to K are not eliminated when pre-paring the consolidated statement of financial position of K.
Which of the statements are true?
(i) (a) and (b) only
(ii) (b) only
(iii) (b) and (c) only
(iv) (a) and (c) only.