CONTROL Flashcards
1
Q
Define CONTROL
IFRS 10 (3 points +1)
IFRS 12 (1 - Structured Entity)
A
- Power OVER Investee
- Exposure to VARIABLE RETURNS
- Ability to USE Power to AFFECT Returns
- > 50% of O.S.Capital of another Company OR has ‘Ability to CONTROL the Board’
IFRS 12:
- Defines a STRUCTURED Entity = Entity that has been DESIGNED so That –> ‘VOTING’ / ‘Similar RIGHTS’ are NOT the DOMINANT Factors in deciding who “CONTROLS” the Entity
