The correct answers are:

• If Denny Co controls the operating and financial policies of Edwin Co, then Edwin Co cannot be an associate of Denny Co.

• If Edwin Co is an associate of Denny Co, then any amounts payable by Edwin Co to Denny Co are not eliminated when preparing the consolidated statement of financial position of Denny Co.

Intra-group balances between an associate and a parent are not eliminated (only provisions for unrealised profits are made).

If Denny Co owns more than 20% but less than 50% of the equity shares in Edwin Co, then Denny co is presumed to have significant influence over Edwin Co, however this is not definitely the case.